KEY POINTS:
The debut of Sony's Playstation 3 tomorrow kicks off a battle with Microsoft's rival Xbox 360 that's likely to be fought largely on the quality of video game titles and the relative strengths of the high definition disc drives the consoles support.
But another front in the battle will also be fiercely contested - one for dominance in the world of online gaming, which Microsoft has largely had to itself with its Xbox Live platform.
Sony's internet-enabled PS3 allows owners to connect via their broadband connections to the Playstation Network where games can be purchased, movie trailers downloaded and gamers can join online multiplayer communities. Access to the network is free, but much of the content is charged for via credit card.
Online-only arcade games such as Flow start at US$3 ($4.25).
The Playstation Network will have a local interface, but most of the content will be based overseas. Sony Computer Entertainment managing director Warwick Light said gamers joining multiplayer games would connect to overseas servers, but were unlikely to experience delays in game play.
"If gaming latency is an issue for some games, we'll try and host the games in Australia," he said.
Equipped with an Ethernet connection, PS3 owners can plug their new console into a broadband router and connect automatically to the Playstation Network. Light said the ultimate success of the Playstation Network would depend to some degree on how rapidly broadband penetration improved.
"The point is, that for the sake of the whole country, we need to get there. We're hoping the PS3 will act as an accelerant for broadband uptake."
The PS3 comes with a web browser, allowing users to surf the web from their TV sets. A virtual keyboard can be used to punch in internet addresses.
Accessory makers such as Logitech are also supplying wireless keyboards that can be used with the PS3 for typing commands into the browser. Light said any web-based messaging and email service would work with the browser.
A large part of Sony's online strategy seems to focus on adapting its successful console franchises, such as the karaoke game Singstar and the quiz game Buzz.
"My Singstar will come to the PS3. Download songs or upload your own karaoke effort," said Light.
"More people [in New Zealand] own Singstar that own an Xbox. Buzz is probably half as many. People have got into this stuff in a massive way."
The Sony EyeToy video camera could be used to video conference with other EyeToy users, said Light.
And the PSP handheld gaming device, which has built-in wireless networking, will eventually be able to connect remotely via the Playstation Network to access content stored on a user's PS3 console.
Sony this week unveiled Home, a major component of the network featuring streaming videos and virtual characters, that will be free to access from later this year.
A new online game, LittleBigPlanet, will follow the trend started by the online virtual reality game Second Life, allowing users to interact in a large online community.
But Microsoft hasn't been idle as Sony has been readying its Playstation Network. It has made movie and TV downloads available through Xbox Live and in January said it would offer internet TV channels as well.
It will also grant PC gamers running Windows Vista access to the Xbox Live realm, meaning PC and console gamers will participate in online games together for the first time.