High-Profile Japanese Firms in Joint Venture

Sony Corp. is completing details of a venture with Toshiba Corporation and Matsushita Electric Industrial Company to develop interactive services for digital television. Japanese media reports indicate that the undertaking will be compete by fall 2000 and will include digital television broadcasts, tele-shopping, and on-demand music and video games.

The three electronic manufacturers have embarked on the combined venture to split development costs and to present consumers with a single standard for interactive television. Regular digital programming is also expected to be available in fall 2000, as Japan's five biggest television networks will reportedly offer the service using a newly launched satellite. Some analysts say that these services could start a new digital revolution in one of the most electronically advanced countries in the world.

Recently, Ken Katarugi, president of Sony Computer Entertainment, discussed that, in his opinion, there could be waning demand for consoles in the near future, as game software is provided through one universal device. He envisions that, in the near future, broadband solutions will allow all games to be played over a network. This latest deal by Sony is yet another step toward positioning itself in this broadband-driven gaming environment.