PS3's World Domination Plan: A Baby Step (SNE)

Sony is making an incremental move toward its long-held goal: Turning the PlayStation 3 into an entertainment hub. A free update later this month will allow users to download mini-games and movie clips/trailers. That’s nice. But it’s still not nearly as useful as the Xbox 360 (MSFT), which downloads and plays entire movies. Not to mention Apple’s iTunes(AAPL) and a host of other offerings.

So why wouldn’t Sony (SNE) do the same? We don’t know. The PS3 is already a powerful home entertainment device, via its Blu-ray DVD player. Why not make it even more compelling?

Sony wouldn’t want to try HD movies via download, because the transfer speeds would be way too long for the machines’ ADD owners. But said owners are pretty tech-savvy, too: They understand why couldn’t get HD over the Web — for now. But they’d probably be happy to watch Spider-Man 3 in standard def, too. Wait a minute — no, they wouldn’t.

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