This is an interesting space, with OnLive coming to market in a few weeks the promise of a revolution in the on-line gaming space is looking more and more real. Both the Xbox 360 and the PS3 are aggressively moving on on-line capabilities. My briefing last with the BD-Live folks, however, made me wonder if the Sony executives live on the same planet with the rest of us. For instance they announced in movie Instant Messaging and email both of which cause the movie to shrink to about 40% of its normal size. They also announced MovieIQ which gives you interesting information about the scene you are watching (actors their history for instance) but won't work on any move sold before this coming September. And they announced, for an extra up charge, the ability rip movies to an iPhone/iPod Touch, PC, or PSP but not play them on a regular DVD player (which is what most of us probably have).
These features do work on PS3s and should work on most current generation connected Blu-Ray players.
Microsoft has been better with an aggressive focus on being able to buy and rent movies and games on-line making their product more compelling. That and the fact they are generally cheaper and have a better game library is allowing them to continue to outsell Sony even though their player is a year older and has had reliability problems.
Both products will allow you to stream music and video off of a compliant NAS, Home Server, or properly configured PC. Expect both to improve this capability going forward.
Long term though I think most people will have trouble buying a gaming console for media, and those that sell them subsidized like Sony (where their profit comes from game sales) will likely not want that many people who don't aggressively buy games to buy them either. This will probably work against Sony making better streaming a higher priority. They appear to have only done it to compete against Microsoft.
On application stores, I do think they are coming. Microsoft has been (as noted above) very aggressive with their live properties and being able to download games. But Apple's example of turning devices like this into a platform is compelling and how Microsoft balances this against further damaging their Windows business and pissing off more OEMs will be interesting. Sony will have less of a problem with this but their platform is truly nasty to develop on. Watch OnLive as there, this kind of thing would be relatively trivial.
You Say You Want a Revolution? I hope, We Won't Get Fooled Again.
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Hi, Rob -- just curious, what role do you see what are now called "gaming consoles" playing in this focused appliance future? My PS3 acts as my Blu-ray player, and it's been online since I bought it. All it needs is a much better music app and I'd be happy to have it as my one entertainment system. Do you see focused appliances offering ad-on apps through closely managed channels (like consoles), or more in a marketplace model like smartphones are adopting?