Thursday, March 20, 2014

Sony Computer Enterainment Inc.

Sony is joining the hot new field of virtual reality devices in an effort to find a compelling new way to play videogames and differentiate itself from its competitors.

At the annual Game Developers Conference in San Francisco on Tuesday, Sony showed off a prototype device – called "Project Morpheus" – that can be worn to create a virtual reality experience when playing games on its new PlayStation 4 console. Sony said the device, which covers a customer's eyes with a screen, creates a unique experience that makes gamers feel more connected to what's going on than if they were playing on a television.

"Nothing elevates the level of immersion more than VR," Shuhei Yoshida, head of PlayStation's videogame software division said at the event. "Many of us in PlayStation have dreamed of VR and what it can mean to the games we create."

The device will "seamlessly" integrate with the PlayStation Camera with built-in sensors to track head movement, Sony said. A player can also use the PlayStation Move handheld controller as a sword, for example, and experience the feeling of fighting off enemies in a virtual world.

Sony declined to say when the device will be launched, nor how much it would cost. The company also wouldn't say what the final specifications of the product will likely be.

Sony's newest effort bolsters the field of virtual reality goggles, which have built-in displays to help convey the effect of entering a simulated world, instead of relying on transparent third-dimensional glasses for viewing a movie or TV screen. Previous to the release of such goggles, virtual reality was largely simulated though a technology known as "augmented reality," where game images were layered on top of the real world.

Sony had long been rumored to bring its virtual reality headset to the market, but the unveiling of the device comes just as sales of its PS4 consoles have been strong. Sales have topped 6 million units worldwide since its launch in November.

The Japanese tech giant is betting on its gaming division to drive sales at a time when its once-revered electronics businesses are struggling. The company expects an annual loss of $1.1 billion, weighed down by costs to fix its television and personal computer businesses.

In the past, Sony has experimented with 3-D technology. At various times, it has sold games for the PlayStation that support 3-D images, and it has even sold a PlayStation-branded 3D TV. The company also sells a "Personal 3D Viewer" headset, which it says works both as a way to watch TV and to play videogames. It costs $1,000.

Today, the most visible virtual reality headset maker is Oculus VR, a startup from Irvine, Calif. That company, which unveiled its "Rift" goggles two years ago, has since become a magnet for eager developers. Various videogame accessories makers have begun creating products that incorporate the company's product, as have several videogame developers. Oculus still hasn't said when its product will hit retail store shelves.

Brendan Iribe, chief executive of Oculus VR, said he's not particularly worried about increased competition. He added that Oculus has been able to hire well-known developers from the videogame industry, such as "Doom" creator John Carmack.

A larger concern, he said, was that he hopes any companies offering competing products focus on good customer experiences. "We hope big companies take the time that's required to do it right," he said.

Analysts say Sony's entry into the field could help to bring virtual reality headsets closer to the mainstream. Building such devices that meet consumer expectations has also become easier with advancement in computer, graphics and display technologies, says Brian Blau, research director in consumer technologies at Gartner.

Still, Blau says Sony's VR system, when it does hit the market, will likely be limited to hard-core gamers already owning PS4 consoles in the initial phase. "If they want mass adoption, they'd have to make it as cheap as they can."

The consumer electronics industry has been chasing 3-D visuals and virtual reality products for decades. Films made with 3-D and viewed through specialized glasses are now commonly shown in movie theaters. But the success of these movies hasn't translated to TVs. Analysts say customers are more accepting of bulky headwear necessary to create the optical illusions in movie theaters, rather than in the home.

Nintendo has had what is likely the most contentious relationship with the technology. In the early 1990s, it developed a product called "Virtual Boy," a headset that displayed 3-D images. But the visuals were more simplistic than customers were used to. Reception was so poor that it was pulled off shelves after a year.

The company tried again with its 3DS handheld in 2012, offering three-dimensional images without the need for specialized glasses. Customers were still slow to catch on, however, and the device only began gaining traction when Nintendo cut the price as much as 40% and released a bevy of new games.

Microsoft as well has also tested various virtual reality products, but has yet to release any.

Naoki Yoshida, the director and producer for Square Enix's latest "Final Fantasy" franchise game, said he's turned down opportunities to work on virtual reality products so far because he isn't convinced they'll become a mass-market trend.

"It is exciting and has potential for great gameplay, but will it be a good business and source of revenue yet? We don't know," he said through a translator.

Yoshida said historically, add-on products and peripherals don't tend to do very well and only sell to a fraction of customers. That reduces potential reach for his company's games, he added. "If it had been included in the hardware at launch, I would have considered making a game for it," he said.

But, he said, it's reasonable for hardware makers to explore new types of gameplay, particularly considering expectations that the industry may not grow much in the next several years. "The only thing that may induce growth is a brand new experience that's different from previously provided," he said.

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