Sony Computer Entertainment president Kaz Hirai (pictured left) said that the company is aiming to compete in a wider entertainment space than just console gaming, MCV reports.

Speaking at the PlayStation Day event earlier this week, the president stressed that that Sony's consoles compete with more than just Microsoft's Xbox 360 and Nintendo's Wii hardware.

"I think that PS3, PS2 and PSP are all entertainment platforms so I feel that our competition is not Microsoft or Nintendo, but basically any form of entertainment that is competing for the consumers' attention," Hirai said.

"So we need to make sure we offer the most compelling entertainment—not video game entertainment but in entertainment in general," he added. "I can't speak for [Nintendo and Microsoft's] strategy but I like to think that we've got a very well balanced portfolio with PS3, PSP and you can't discount the PS2."

Sony Computer Entertainment announced today that Polyphony Digital's driving simulation series Gran Turismo has shipped over 50 million units across the world.

The franchise debuted in 1997 on the original PlayStation, and made the shift to PlayStation 2 with Gran Turismo 3: A-Spec in 2001. The series' first PlayStation 3 retail release recently arrived in the form of Gran Turismo 5 Prologue, which is meant as a sample of the eventual Gran Turismo 5.

While North America has only received five Gran Turismo games so far, Japan and Europe have seen seven due to Gran Turismo Concept 2001 Tokyo (PS2) in 2002 and Gran Turismo 4 Prologue (PS2) in 2003.

Sony noted that of the 50 million units shipped, 2 million of those were Gran Turismo 5 Prologue. However, it was not clear if Prologue's contribution only referred to physical copies, or if it included digital downloads of the title through the online PlayStation Store.

Console maker Sony is rumored to be abandoning the license for Formula 1-branded racing video games, with increased license costs blamed as the culprit.

Citing "industry sources," TG Daily claims that there is apparently a wide gap between what Formula 1 wants for the license and what Sony is actually willing to pay.

Sony's hold on the F1 license has long kept the sport from appearing on any non-PlayStation platforms. With Sony supposedly out of the picture, an F1 game could find its way to multiple platforms.

The report named EA, Ubisoft, and Codemasters as possible licensees, though it could go to any of the countless other publishers in the industry. EA and Codemasters are both established developers in the racing genre, while Ubisoft has yet to produce a major racing title.

Sony Computer Entertainment president Kazuo "Kaz" Hirai claims that the PlayStation 3 will surpass the Wii and Xbox 360 within the system's 10-year life cycle.

"We've only really begun to scratch the surface with PlayStation 3 but I am confident that given the long life cycle we have planned for the machine we are going to have a very good install base in all of the major territories," Hirai told the BBC. "I am very confident that after the 10-year life cycle we will have the install base that we are looking for."

PS3 sales were recently announced to have surpassed the Xbox 360 in Europe, where it still trails behind Nintendo's Wii. Hirai noted that the PlayStation 3's 2008 software line-up would aid in driving sales of the console for the year.

"If you look at line-up coming out this year--Metal Gear Solid 4, Resistance 2, [Motorstorm sequel] Motorstorm: Pacific Rift, LittleBigPlanet--there is a whole raft of titles between now and the end of the year which will really help fuel growth of the install base."

Sony Computer Entertainment Europe president David Reeves said that Sony's PlayStation 3 has outsold Microsoft's Xbox 360 in Europe, having moved more than 5 million consoles since launch, Eurogamer reports.

Speaking at the PlayStation Day event today, Reeves added that the PlayStation 3 managed to surpass the Xbox 360 despite the rival console's 16 month head start, and outselling its competitor on a month-by-month basis since October of 2007.

"We are particularly proud of this as it has been achieved in a similar time frame as PlayStation 2 which retailed, if you remember, at a significantly lower price," Reeves noted.

Among other sales figures divulged in the press conference were a total of 12 million PSPs and 48 million PlayStation 2s units moved in lifetime sales in the European territory.

Sony Computer Entertainment has issued a response to numerous reports of technical maladies in Grand Theft Auto IV which describe system freezes across both the PS3 and Xbox 360 versions of the game.

Yes, we are aware of what the message boards and a few of the industry blogs are saying about a 'freezing' issue with GTA IV on a limited number of PS3s.

Although we have seen an extremely low volume of contacts to our customer service department regarding such an issue, we want to ensure that every consumer has a great experience on our console and with GTA IV. All parties involved are working to isolate the problem for those few units and identify a solution.

No official statement has yet arrived from developer Rockstar or parent company Take-Two Interactive.

In addition to system freezes, reports of internet multiplayer connectivity issues have also surfaced, in which players attempting to start the title's multiplayer component were met with an error message reading "Cannot connect to game provider."

Following the newly updated PlayStation Store, Sony Computer Entertaiment America marketing VP Peter Dille said that in-game functionality of the PlayStation 3's XMB interface will be available sometime this year.

In an update to SCEA's PlayStation Blog, Dille said that the long-awaited integration of the PlayStation 3's XMB user interface with games would arrive this year, allowing for more streamlined communication for users engaged in play. The XMB is the PlayStation 3's front-end navigation system which players use to navigate features such as downloadable games, friends list, music and video.

The company had previously announced that the PlayStation 3's firmware update 2.4, aimed for a summer release, would improve in-game communication. Dille did not specify a particular firmware update or release window for the in-game XMB functionality.

Moreover, Dille hinted at plans in the works for other community-related services coming to the PlayStation Network and PS3 this year. "[The services] will be designed to allow more community development and collaborative gameplay as well as recognize and reward you for your gameplay accomplishments across a broad portfolio of PS3 games," he wrote.

The executive also announced that PlayStation Cards are now shipping to retailers in $20 and $50 denominations. Already available in several overseas territories, the cards allow customers to purchase items from the PlayStation Store without the need of a conventional credit card.

The PlayStation 3's redesigned DualShock 3 controllers are currently shipping to North American retailers, Sony Computer Entertainment has announced.

According to SCEA's press alert, the DualShock 3 should be available at retailers this week, though the official PlayStation blog provides an estimated arrival of next week.

Priced at $54.99, the Sony-produced wireless controller brings rumble functionality to the PlayStation 3. Announced last fall, they debuted in Japan late last year. The absence of rumble in the PlayStation 3's motion-sensitive Sixaxis controllers was the source of much criticism upon the system's debut. At the the time, Sony attributed the PS3's lack of rumble to difficulties with the Sixaxis' motion sensing technology.

Then-SCE Worldwide Studios head Phil Harrison even went so far as to claim rumble was "a last generation feature," though conspiracy theorists believed the exclusion to be the result of a now-settled lawsuit.

A list of released PS3 titles that support the vibration functionality follows... Read more

The US International Trade Commission said that it will launch a patent infringement investigation into technologies related to the Blu-ray format, GameSpot reports.

The Commission noted that the investigation will be focused on "certain short-wavelength light emitting diodes, laser diodes, and products containing same." It named several companies in the investigation including Sony, which created the Blu-ray format, as well as Samsung, Sharp, Toshiba, Nokia and several others.

Blu-ray was crowned the winner of the "format wars" following hardware manufacturer Toshiba's announcement last month that it would cease production of HD DVD players and recorders. Currently, Sony's PlayStation 3 is the only game console that supports the Blu-ray format.

The investigation was sparked by a complaint filed on February 20 by Gertrude Neumark Rothschild, who claimed that laser diodes imported for use in Blu-ray and other high-definition disc players infringe on one of her patents. Rothschild requested that the Trade Commission issue cease and desist orders to all the companies named in the investigation.

Citing digital movie downloads as the future of Xbox 360 media playback, Microsoft today ruled out the possibility of a Blu-ray add-on player for the system.

Microsoft Interactive Entertainment Europe VP Chris Lewis was the latest voice from the company to refute rumors of a Blu-ray add-on player. "We have no plans to do anything at all in terms of further or additional movie playback peripherals," Lewis told MCV.

Lewis also stated his belief that consumer choice is turning towards digital media distribution. “My own view is very clear and I know it's shared by other people in Microsoft is that the future's digital downloads now. The broadband proliferation is amazing—people’s appetite to download movies through Video Marketplace is testament to that.

"Online is the future. And we're very well placed to take advantage of that," Lewis added.

The VP's comments add further weight to a statement made by Xbox product manager Aaron Greenburg Wednesday in which he dismissed reports that Microsoft and Sony were in talks concerning Blu-ray movie functionality on the Xbox 360.

Following hardware manufacturer Toshiba's announcement that it would cease production of HD DVD players and recorders of the format, Microsoft axed its Xbox 360 HD DVD add-on peripheral, with comments from the company prompting many to speculate that a Blu-ray player add-on was in the works.

Sony Computer Entertainment announced today that EverQuest (PC) and Star Wars Galaxies (PC) publisher Sony Online Entertainment will be restructured to help streamline development of the PlayStation brand's online offerings.

As part of the restructuring, SOE will report directly to Kaz Hirai, president and CEO of Sony Computer Entertainment and its studios. SOE, which recently launched PC MMO Vanguard: Saga of Heroes, is currently developing its spy-themed MMO The Agency for release on the PlayStation 3 and PC.

"I am excited to be able to work with SOE even more closely, as online games and services become a more integral part of the PS3 entertainment experience," said Hirai.

The realm of console MMO development is often cited by developers as a vast untapped market. While difficulties in bringing MMOs to consoles are manifold—including hardware and disk space limitations, and networking issues—many studios have made it a priority to crack the traditionally tricky market in the console ... Read more

Microsoft is not in talks with Sony to bring Blu-ray movie functionality to the Xbox 360, Xbox product manager Aaron Greenberg has revealed.

"Xbox is not currently in talks with Sony or the Blu-ray Association to integrate Blu-ray into the Xbox experience," Greenberg told Reuters.

Greenberg's comment clarifies a statement made by Sony Electronics US president Stan Glasgow earlier this month, in which the executive said that the company was in talks with Microsoft concerning an adoption of the Blu-ray format.

However, Greenberg's denial of talks to bring Blu-ray movie playback functionality to the Xbox 360 does not rule out use of the format on Windows-based PCs.

The Blu-ray format, which was developed by Sony as well as several other companies, was crowned the victor of the "HD format wars" when hardware manufacturer Toshiba ceased production of HD DVD players and recorders.

Microsoft soon followed suit, axing production of the Xbox 360 HD DVD player add-on, with rumors suggesting that an Xbox 360 Blu-ray add-on player could arrive as early as May.

Sony said that it is in talks with Microsoft concerning Blu-ray movie playback functionality for the Xbox 360, according to the Financial Times.

Sony Electronics US president Stan Glasgow stated yesterday that the companies were discussing the possibility of Microsoft adopting the format. Whether or not this would take the form of a hardware revision with a built-in Blu-ray player or an external add-on peripheral similar to Microsoft's HD DVD player was not specified.

Speaking at the Mix08 Internet conference in Las Vegas, Microsoft CEO Steve Ballmer said that plans for Blu-ray were in the works—but how those plans will manifest remains to be seen.

"We've already been working on, for example, in Windows, device driver support for Blu-ray drives and the like, and I think the world moves on," Ballmer... Read more

Atari parent company Infogrames Entertainment today announced the appointment of former Sony executive Phil Harrison as the company's new president.

Harrison, who resigned from his post as the president of Sony Computer Entertainment Worldwide Studios late last week, will also join Infogrames' board of directors in his new position. As president, he will oversee the studios and content development for the group.

"This is the perfect time to join Infogrames and help shape the future of Atari—one of the industry's legendary brands," Harrison said today. "As the game business moves rapidly online I believe we have an outstanding opportunity to create amazing network game and community experiences for players the world over."

The addition of Harrison to Infogrames' corporate roster comes amid troubled times for the publishing house, which is restructuring in effort to cope with mounting losses, a hefty settlement payout to FUNimation over royalties owed for properties associated with Dragon Ball Z, and a 20% cut of its workforce.

Sony today announced that the rumble-enabled DualShock 3 controller will be in PlayStation 3 owners' hands by this April.

The new pad--which looks a lot like the old pad--will sell for $54.99, a $5 increase over the non-vibration version.

Sony Computer Entertainment today announced the formal resignation of SCE Worldwide Studios president Phil Harrison.

SCEI president and group CEO Kazuo Hirai will take over Harrison's duties in addition to his own.

Harrison joined Sony in 1992, serving in a variety of executive roles during the company's early PlayStation period. Appointed to the newly-christened position of Worldwide Studios president in 2005, Harrison was responsible for developing a global strategy for Sony's game division, fulfilling a wide range of duties.

Harrison recently criticized Sony Japan for its lack of foresight in regards... Read more

Research firm iSuppli estimates that Sony's PlayStation 3 will exceed sales of the Wii and Xbox 360 by 2011, reports Reuters.

iSuppli reckons that strong momentum of the system will build during 2008, estimating that Sony will sell roughly 10.2 million PS3s worldwide through the year and double its install base to over 20 million users. Sustained growth will propel the PS3 to some 38.4 million users by 2011, which the firm suggests will position Sony as the "industry leader" in installed units.

The Wii is projected to maintain its lead through 2008, selling 12.2 million hardware units and putting it on top for the year at over 30 million users worldwide. iSuppli's estimate of the Wii's total market share in 2011 was not provided, but the firm's projection that the PS3 will lead at 38.4 million units by 2011 seems to indicate that it believes the Wii will sell less than 8.2 million units over three years.

January hardware sales figures reported by sales-tracking firm NPD yesterday show that the PlayStation 3 outsold the Xbox 360 for the first time since the system launched in November, 2006.

Pacific Crest Securities analyst Evan Wilson has suggested that Microsoft and Nintendo will unveil hardware follow-ups to the Xbox 360 and Wii in 2010.

"We believe that peak industry sales will occur in 2010, given that Microsoft will likely introduce its next console that year and Nintendo will likely launch before then," Wilson told GameSpot. "Further, 2010 is also likely to coincide with the end of the Nintendo DS and Sony PSP cycles."

The 360 and Wii were released in late 2005 and 2006 respectively, pinning Wilson's projections on a four to five year product life cycle for the consoles. Wilson made no projection for a PlayStation 3 follow-up, owing perhaps to the high costs of the PlayStation 3 and Sony's projections of a ten year life cycle for the console.

Sony released some new screenshots of Ready at Dawn Studios' PSP title God of War: Chains of Olypmus today. And by some, we mean a lot.

With 75 images to peruse, these should keep you entertained until the March 4 release date of the Kratos-starring prequel. And if you click fast enough, it actually looks like a video. (Hint: Click in reverse for a secret message from Satan.)

SCEA has officially announced a PSP port of thatgamestudio's flOw for a March 6 North American release, as well as unveiling a handful of new screens.

The port, developed by SuperVillain Studios, will be made available on the PlayStation Store for the PC as a downloadable PSP title. No price point was announced alongside the announcement.

Speculations of a PSP version of the title were raised after a product listing for flOw on the PSP appeared on Sony Computer Entertainment's Website last week. Described by our own Chris Faylor as a "calming life simulator", flOw began life as a Flash-based PC distraction before moving to the PlayStation 3 as a downloadable title.