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http://www.businessweek.com/innovate/content/dec2008/id20081229_857029.htm

(Excerpts from Business Week - Link for full story)

How to Save the PlayStation 3

Sony finds itself playing a fierce game of catch-up with the competition. Here's how it can reclaim lost territory

By Grant Holzhauer

Last generation, Sony set the bar. Despite being the underdog in horsepower and built-in Internet capabilities, the PlayStation 2 shattered sales records and was the clear victor of the console war with Microsoft and Nintendo. This time, plagued by an expensive price tag and other issues, Sony finds itself playing a fierce game of catch-up with the competition. It's time for the company to reclaim lost territory. Here's how it can do it.

The All-in-One Box
Even though Sony has its own movie and television studios, Microsoft was the first to launch a movie download service and most recently inked a deal with Netflix. Sony's online movie catalogue is still in its infancy, with even fewer movies available in HD, and the price is high for a digital-only copy of popular movies ($15 for Batman, really?). Sony should be the leader in this realm............

Home Sick
Home was supposed to be Sony's answer to Xbox Live. Arriving late and still in beta, this is not exactly what we hoped for...... Instead of a grand evolution of online connectivity, all we have is a glorified chat room. If it wants to compete with Microsoft's New Xbox Experience, there's still time, but we have short attention spans.

Indie Gaming
With Microsoft's realized XNA program and the cheap development costs of working with WiiWare, we're seeing a much greater number of games coming from independent and small game developers. On the PS3, however, new downloadable releases are rare.Sony should stop flexing its muscles a bit and show more love to the little guys.

Try Before You Buy
Microsoft stipulates that each game has a demo, but couldn't Sony require the same thing? People like free things, and if Sony would be more generous, people would probably open their wallets.

We Still Love the PS2. Sony made a horrible mistake by nixing ability to play PS2 games from the current PS3 models and needs to address this issue. It should start by offering PS2 games for download on all those massive PS3 drives.

Don't Forget Your Roots
Once upon a time, if you wanted to play a Japanese role-playing game, you'd have to own a PSOne or PS2. What was once a staple for Sony is now a rare treat.

Despite having its own MMORPG studio, Sony has not released a single one for the PS3 (with The Agency still a ways out). Sony, you need to get back to your roots before they dry up.

The Death of the Exclusive
Sony needs to work harder to score exclusive content.

Money Doesn't Grow on Trees
Although the PS3 is an amazing piece of hardware, many people cannot afford Sony's $399 base price. Sony, you have to be in touch with gamer's wallets. And while online multiplayer gaming might be free on the PS3, you're charging for things like Qore, even while Xbox Live is offering tons of video and preview content for free. With a cheaper console, you'll sell more games. That's the only way you're going to be able to recoup the cost of the hardware.

Streamline the Online Experience
The PS3's community platform, despite Home's rookie efforts, needs a lot of work. There needs to be a unified online interface, one that doesn't require that you spend five minutes logging into Home to access Get the system up to snuff fast, or people are going to stop waiting and move on. We know that you can do it, but we refuse to wait long.