There is no doubt that the first year of life for the PS3 has been a rocky one. Price cuts, new system bundles, and bailing third party exclusives have all served to help muddy the waters of what was supposed to be another easy win for Sony. However, recent events have started to shift things more and more in Sony’s favor.

At least some of the PS3’s problems can be blamed upon the inclusion of its now infamous Blu-Ray drive. While that certainly was a hindrance in the first year (leading to higher system costs and therefore fewer buyers), it has proven to be a worthwhile gamble for Sony. HD-DVD, Blu-Ray’s rival format, is dying a expedited death and Sony now has a corner on the high definition media market.

Recent rumors of yet another new PS3 bundle may have some worried about more confusion, but it offers keen insight into Sony’s long term strategy. With the optical disc format cornered, Sony now turns its attention digital downloads and to Apple’s iTunes and Microsoft’s Xbox Live Marketplace. It’s already well known that Sony will take on Xbox Live this year when the finally introduce their Home online counterpart, and it’s been long rumored that around the same time they will move more into digital media distribution. The rumored new PS3 models seem to indicate this may be happening soon.

The rumor is for a 120-160GB unit that includes the new Dual Shock 3 controller. While the controller is there for obvious reasons, one has to question the need for such a large hard drive. Even with Home’s installation and downloadable titles through the PlayStation network, the current high-end 80GB system would seem to be plenty big. Even the old 60GB was overkill for most. So what motivation could Sony have other than thinking (or perhaps hoping) owners might fill up the drive with other content.

Sony is in unique position compared with Apple and Microsoft. By already owning the content, a chance at owning the distribution channel is just too enticing to pass up. Besides downloadable TV, movies, and music, Sony could attempt to trump Microsoft by introducing an all-you-can-eat plan. Imagine paying $29.95 a month for all the TV shows, movies, and music you want to download to your PS3? Make that even more appetizing by including transfer support for the PSP. Suddenly you have a real contender to both Xbox Live Marketplace and iTunes, not to mention the iPod itself.

There’s really no other valid reason for such a large hard drive in a game console, unless Sony plans to sell retail games via download in the near future. That could be an option, as cutting out Wal-Mart and Best Buy would likely mean more money directly into Sony’s pockets. But such an idea falter when one considers some titles fill up a good 15GB or more of disc space currently. That’s not exactly the type of thing most would want to download, and try to keep managed on a hard drive (120GB would seem small after just a handful of titles).

Downloadable media is certainly coming to the PS3. The question now is, how much is Sony behind the idea? One needs only look to their new model rumors to get an idea.

Related posts:

1. Of course Sony is going to offer downloadable PS2 games
2. Sony kicks things up a notch with Home Content for Warhawk, Resistance and Uncharted
3. Sony confirms Xbox 360 looking Blu-ray
4. Microsoft takes on Nintendo and Sony in portable market…sort of
5. E3 2008: Sony press conference review

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