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TechInsights TechAlert Service:


Competitive Alert - First Quarter 2010

March 25, 2010


In This Issue:

Sony Patents "Degradable" Video Game
Sony’s PSP go Not Going as Expected
Softbank Mobile to Market Mobile WiFi Router
Nintendo to Roll Out Nintendo 3DS in Fiscal 2010
acTVila to Stream 3D Content
ZTE and Huawei Advance Their Presence in the Global Handset Market
Marvell Announces $99 Tablet PC
Dell Sues Sharp and Others for LCD Price-Fixing

Sony Patents "Degradable" Video Game

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Sony Computer Entertainment America has patented a video demonstration program with functions that gradually degrade as the demo is used, reported inside-games.jp in March 2010.

Demo versions of games typically have limited functionality. However, the newly patented Sony program allows for a demo version of a game to be released in a near-complete state that gradually loses functionality the more it's played.

For example, for an auto-racing game, the selection of race tracks and the maximum speed of the cars are progressively reduced as a player continues to play. For a role-playing game, the weapons of certain characters will be downgraded in power. To get complete functionality back, users must buy the real version of the game.

In the past, demo versions of video games, which are designed to promote sales, have given players only a small sample of what the real versions can do. Using Sony's new video demonstration program, content providers can now present potential customers with game demos that have almost complete functionality — for just long enough to get them hooked. Then they'll want to go out and buy the real version of the game. That's the idea, at least. [M. Robertson, TechInsights]


Sony’s PSP go Not Going as Expected

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Sony’s PSP go has not "gone" where expected since its debut in November 2009, despite Sony’s high hopes for the new handheld video game console, reported ITmedia in March 2010, citing a U.S. source.

The company originally forecast that the WiFi-ready handheld device would sell 1 million units during fiscal 2009. Since the beginning of the 2010, however, Sony has sold only about 23,000 units of the PSP go. Sony PSPs (PlayStation Portables), by comparison, are selling on average 70,000 units a week. During the first week of March 2010, for example, the company sold 60,000 units of the PSP but only 1,275 units of the PSP go.

Sony, admitting that the PSP go is not selling as well as hoped, has lowered its sales goal to 10 million units from 15 million units. The company blames intensifying competition in the handheld game market for the device's poor showing and says that enriching key software and downloadable content is key to better sales. Reviewers criticize the PSP go's inability to support UMD (Universal Media Disc) games. They also note that the change from a mini-USB port to a proprietary port makes hardware and cables purchased for previous incarnations of the PSP no longer compatible. Moreover, the company’s commitment to a digital download strategy means that the PSP go only supports games through downloading. Finally, the real clincher for the PSP go to be successful, they say, is for the price to come down.

In related news, Sony is reportedly developing both a smartphone and a product to compete with the Apple iPad. The smartphone will be a PSP phone capable of downloading games and compatible with its popular PSP game console. The other device is described as a netbook, ebook reader, and game console all in one. [M. Robertson, TechInsights]


Softbank Mobile to Market Mobile WiFi Router

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Softbank Mobile of Japan plans to offer a mobile WiFi router manufactured by Huawei of China, reported CNET Japan, in March 2010.

The new Pocket WiFi Softbank C01HW integrates 3G-to-WiFi (IEE802.11b/g) capability and can serve as an access point. The unit can support up to five devices simultaneously. Its functionality is same as the Pocket WiFi (D25HW) sold by eMobile. In fact, by switching out the USIM card, the unit can support either the Softbank Mobile network or the eMobile network. Using eMobile’s USIM card, users can attain downlink rates of 7.2Mbps and uplink rates 5.8Mbps.

The Pocket WiFi Softbank C01HW measures 48.6 x 14.1 x 95.5 mm and weighs about 80 grams. The battery yields approximately 4 hours of continuous communication. Supported operating systems are Windows 7, Windows Vista, Windows XP, and Mac OS X 10.5 and 10.6. [M. Robertson, TechInsights]


Nintendo to Roll Out Nintendo 3DS in Fiscal 2010

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Nintendo of Japan announced that it would commercialize a new handheld game console, the Nintendo 3DS, reported ITmedia in March 2010.

The Nintendo 3DS is slated to hit the market before the end of fiscal 2010 (March 2011). Users will be able to play 3D games without wearing 3D glasses. Nintendo will unveil more details at the upcoming E3 (Electronic Entertainment Expo) in Los Angeles (June 15–17).

The 3DS is the latest model in Nintendo’s DS (dual-screen) series, which includes the Nintendo DSi. The new device will maintain compatibility with existing DS software.

Despite the lack of details about the 3DS game console, Nihon Keizai Shimbun, Japan’s largest financial daily, reported that the device will likely feature a stick that's capable of 3D operations as well as a component that transmits vibrations. The paper also noted that the wireless communication throughput rate and battery life of the new system will be significantly improved. Apparently, Nintendo is also considering incorporating an accelerometer. The screen size of the 3DS is expected to be smaller than that of the DSi LL (also known as the DSi XL), which has a screen measuring 4.2 inches diagonally.

As Apple and Sony Computer Entertainment are busily transforming their respective iPhone and PSP devices into multimedia devices, Nintendo is attempting to differentiate its game consoles by augmenting the available functions. [M. Robertson, TechInsights]


acTVila to Stream 3D Content

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acTVila (http://actvila.jp/) of Japan announced that it will begin steaming 3D content this summer, reported ITmedia in March 2010.

acTVila is a TV portal service accessible by net-capable TVs; it was founded by a half dozen Japanese TV manufacturers in late 2006. The company will stream the 3D content from its special 3D site. The streamed video will be compatible with the new 3D TVs from various manufacturers scheduled to hit the market later this year. Service details, content, specifications, pricing, and compatible TV models are yet to be announced.

Panasonic and Samsung have both recently introduced 3D TVs, and Sony has one in the works. Cable company J:COM plans to offer 3D content via VOD (Video on Demand), while SKY PerfecTV HD will offer 3D content via satellite digital broadcasting.

Panasonic’s 50-inch 3D TV, which is bundled with 3D glasses and a 3D-compatible Blu-ray player, went on sale this month in the U.S. for $2,900. The TVs were sold out in one week. Panasonic hopes to sell 1 million 3D TVs during fiscal 2010. Samsung Electronics introduced a 55-inch 3D TV this month, as well, for $3300. Sony's 3D TV is slated for release this coming June. [M. Robertson, TechInsights]


ZTE and Huawei Advance Their Presence in the Global Handset Market

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The ROA Group (http://japan.researchonasia.com/), a market research company, released a free report entitled “Reasons for and Thoughts on the Power Increase of ZTE and Huawei,” reported japan.internet.com in March 2010.

According to the report, the shipment volumes and market shares of global handset vendors changed significantly between 2008 and 2009, during a year of turmoil in the industry worldwide.

The world’s top five handset vendors are Nokia, Samsung Electronics, LG Electronics, Sony Ericsson, and Motorola. From 2008 to 2009, shipment volume declined for Nokia, Sony Ericsson, and Motorola while it grew for Samsung Electronics and LG Electronics, both of which moved up in the worldwide rankings for market share.
 
Perhaps surprisingly to some, ZTE is ranked sixth, followed by Huawei in seventh. Both of these Chinese companies are coming on strong and expected to increase their market shares. According to ZTE, it shipped around 60 million handsets in 2009. If data communication terminals are taken into consideration, the shipment volumes of both companies are even more impressive.

Huawei’s shipment volume is only about half that of ZTE. However, Huawei won a contract to build about one-third of China Mobile’s network infrastructure. As 3G technology began to take off in China in 2009, Huawei’s network infrastructure business began to prosper along with it. [M. Robertson, TechInsights]


Marvell Announces $99 Tablet PC

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Marvell, a U.S.-based semiconductor company, announced a prototype $99 tablet PC called the Marvell Moby and targeted for the student market, reported ITmedia in March 2010.

The new tablet PC is a part of the company's effort to tap the education market with a tablet PC featuring the company’s ARMADA 600 processor. The Moby also features 1080p full HD video replay, WiFi, Bluetooth, FM, GPS, 3D graphics, and flash support. The diminutive device is compatible with both Android and Windows Mobile and can be used as an ebook reader so that students don’t have to lug their hardback textbooks from class to class.

Marvell plans to team up with public schools in Washington D.C., where the company will implement a test program in which Moby tablet PCs are supplied to students. Marvell is also a sponsor of the OLPC (One Laptop per Child) project. [M. Robertson, TechInsights]


Dell Sues Sharp and Others for LCD Price-Fixing

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Dell of the U.S. filed suit in U.S. federal court in San Francisco, alleging that Sharp, Hitachi, Toshiba, and Seiko Epson, all of Japan, and HannStar Display of Taiwan were engaged in manipulating the price of their LCDs, reported ITmedia in March 2010.

According to a representative from Dell’s Japanese branch, the personal computer manufacturer has made no decision regarding the amount of compensation it will seek in its price-fixing suit.

Just last fall, in October 2009, AT&T, which procures LCD panels for its cell phones, filed a similar price-fixing suit against LG Display and Samsung Electronics of South Korea and AU Optronics of China. Two months later, in December, Nokia also filed a price-fixing suit against 11 LCD makers. [M. Robertson, TechInsights]