Threatened by Apple Inc.'s growing stable of portable devices, Sony Corp. is developing a new lineup of handheld products, including a smart phone capable of downloading and playing videogames, according to people familiar with the matter.
The Japanese electronics giant also is developing a portable device that shares characteristics of netbooks, electronic-book readers and handheld-game machines. The device is designed to compete against multifunction products such as Apple's coming iPad tablet, these people said.
In a bid to steal away game-playing iPhone users, Sony announced they will launch a smartphone that can download and play Playstation games.Both the new smart phone and the multifunction device are expected to work with Sony's new online media platform, due to launch later this month in the U.S. as the company's answer to Apple's iTunes. The new products are targeted for launch in 2010, although many details such as price and certain specifications have yet to be finalized, these people said.
Sony's new media platform, temporarily named Sony Online Service, will offer many of the same movies, television shows and songs already available on iTunes. But the company aims to differentiate its service by allowing a wide range of devices to tap into its catalog of games, mainly older titles released for the original PlayStation console.
The new smart phone and other coming portable devices are critical elements of Chief Executive Howard Stringer's turnaround plan. Sony has made progress in cutting costs and streamlining its production, but it has yet to deliver a game-changing product that embodies Mr. Stringer's emphasis on creating devices that access an online network offering movies, games and music.
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