President, Representative Corporate Executive Officer,
Member of the Board, Sony Corporation

TOKYO (Nikkei)--Compatibility with high-definition images holds the key to the next generation of electronics products, Sony Corp. (6758) President Kunitake Ando said Monday in a keynote address at Global Information Summit 2005.

This year marks five years since the launching of the IT Strategy Council, Ando noted. In this time, Japan has risen to No. 7 in the world in terms of broadband installation, and communication fees have dramatically fallen, he said. "The market for "digital living" -- in which home appliances and computers are connected to a network -- is likely to greatly expand by 2010," Ando predicted.

The melding of audiovisual products and IT has progressed since 2000, Ando pointed out. "The market will begin incorporating communications and games, shifting the focus of these functions in households from integration to consolidation," he said.

"In a consolidating market, the successful convergence of contents, user interface and hardware will be crucial to competition," Ando said. "Succeeding in this endeavor will determine the winner in the era of digital living." But failure will result in a company being ignored by the market, he cautioned.

The winners in this race will continue to change, Ando said. Sony has recently struggled, but it will launch a major offensive this year, he noted. "It is the only company with products ranging from televisions to consumer-grade video cameras compatible with high-definition images," Ando said. "Sony will do its utmost to get consumers to purchase its products based on the premium that comes from the thrill generated by high-resolution images."

(The Nihon Keizai Shimbun Tuesday morning edition)