8 Next... TAIPAN       One of the most interesting
rivalries in business today is the
cyclical battle between the major
game console makers, Sony,
Nintendo and Microsoft. Unlike
most competitors, these jugger-
nauts go head-to-head every three
to four years, announcing and
releasing their new consoles at
almost the same time. Watching
the Microsoft Xbox2—or as the
speculators have named it, Xbox 360—hit the market in the same quarter as Sony’s
PS3 will show where both companies really stand in
the gaming market. Luckily for us, we don’t have to
wait until January of next year to see a similar
showdown.       Nintendo’s DS has been the toast of the portable
gaming community since its release, but the boys in
Kyoto must be a little nervous these days. That’s
because Sony’s Playstation Portable (PSP) is out in
Asia and will launch in America at the end of March.
In honor of its release, let’s take a look at what the
PSP is…   and who is going to get rich from it. The Swiss Army Knife of
consumer electronics This is the year of multi-functionality. Consumers don’t just want MP3 players, they want MP3 players-
phones-digital cameras. In other words, one key to a
media product’s success is how many desired fea-
tures it packs in. Tech buyers want one product with
all of the gadgetry they covet stuffed inside. The
PSP capitalizes on this trend with its wide range of
features. The Sony PSP is a handheld console by name, but it’s really more of a specialized personal media
player. Before we even look at the gaming aspect,
let’s check out some of the other features it offers.
The PSP not only plays music, it is actually capable
of 7.1-channel surround sound if hooked up to the
appropriate speakers. Sony avoided one of its clas-
sic blunders by supporting MP3 and AAC formats
(many of Sony’s previous music players failed
because they only supported its proprietary ATRAC
format).       The PSP also includes USB 2.0, built-in 802.11
wireless networking and a Memory Stick slot.
Movies and music can be played on the PSP
through the Memory Stick (it supports MPEG4 for
movie files). The machine sports an optical drive
that uses Universal Media Disks, a new Sony cre-
ation resembling MiniDisc. Sony has already
opened up the UMD format for developers, open
source-style, in order to encourage programmers to
adopt it. In addition to games on UMD, several
major movie studios will release movies on UMD
for the console. In the words of Paris Hilton:
That’s hot! The first thing you notice when looking at the PSP, besides its sleek form factor, is the 4.3-inch TFT-
LCD display. Every reviewer, professional or fan, has
absolutely raved about the screen. It is a Samsung
16 x 9 (widescreen) panel running at 480 x 272 pix-
els, displaying 16.77 million colors and producing
high-definition pictures.       The PSP is drawing raves from almost everyone
who tries it—reviewers even claim that when they
use it in public, crowds gather around them to check
it out. That’s the kind of hype that must make new will be a welcome addition to the marketplace.
While this new phone, as with all advances of this
kind, will have to prove itself and battle the compe-
tition, I don’t imagine this product is going to have
trouble finding an audience. Making the call       As a techno-geek I’m very excited, but as a mar-
ket analyst I can barely stay in my seat.       That Motorola has delayed the release of this
product means we’re not too late to enjoy the party.
I discussed Motorola’s current position with WaveStrength publisher Adam Lass, and we agreed a strong buy signal could appear if price breaks the
US$16 mark.       If this breakout happens soon (and I believe it
will), and especially if it arrives before the Rokr,
traders might have a great start to their spring. The sleeping giant behind Sony’s
Playstation Portable Alex Chinn