Sony | Stringing along | Economist.com: "The PlayStation 3 also faces stiff competition. It will be the most powerful games console on the market when it launches next spring. But Sony's reliance on raw power to attract buyers looks less sophisticated than the approaches being taken by its rivals. Microsoft is using several new ways to sell its rival Xbox 360 console, such as a co-marketing deal with Samsung; Nintendo, meanwhile, is using innovative controllers and simpler games to reach out to non-gamers, like elderly people who want to sharpen their mental faculties.
Sir Howard's timid reforms mean that he is, in effect, betting that either Blu-ray or the PlayStation 3 will ride to Sony's rescue next year. If these bets do not pay off, he will have to do something far bolder to address Sony's resistance to change. "
Meanwhile, from CNet this week: DVD dispute burns at PC makers
"Earlier this week, Microsoft and Intel announced that they were backing the HD-DVD format, saying its approach will spur easier home networking of movies and make it simpler to distribute hybrid discs containing both high-definition and traditional DVD movies. Dell and HP shot back Thursday, saying the world's largest software and processor makers were spreading "inaccurate" information. They also reiterated their backing for the rival Blu-ray format."