Sony 2000 Annual Report Download - page 25

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SONY CORPORATION ANNUAL REPORT 2000
23
To protect copyrighted material, Sony developed the OpenMG and MagicGate technologies.
These technologies were the first in the world with the capability to control unauthorized use of
copyrighted music handled by electronic distribution services. During the year under review,
Sony began selling the Memory Stick Walkman and VAIO Music Clip, both of which employ
these technologies. By using a PC to transfer music to either of these devices, a user can easily
enjoy such content downloaded from the Internet or uploaded from a CD.
To take advantage of the rapid acceptance of digital networks, Sony has started building a
direct sales system using the Internet. In the U.S., Sony’s VAIO Direct site has been selling
configure-to-order VAIO home-use PCs since February 1999. Sony also sells batteries, head-
phones, and other AV accessories in the U.S. directly to customers through the Xtras Direct site.
During the year under review, VAIO Online sites were established in Hong Kong, Singapore,
and Malaysia to sell VAIO notebook PCs.
During the year under review, Sony established the Sony Style Internet site in Japan and
Europe and began direct Internet sales of Sony products. In Japan, Sony is using this e-commerce
platform to cater to individual customer
preferences by selling selected products
and combinations of products exclusively
at this site.
Sony plans to take on the challenge of
devising new network-based marketing
techniques. For example, based on pre-
ferences gathered through e-commerce
transactions, Sony can supply each cus-
tomer with information tailored to his or
her needs. Furthermore, in Japan, Sony
is striving to build a system in which Sony
Shops and other existing retailers will be
able to deliver, install, and repair prod-
ucts purchased directly by consumers
over the Internet.
Sony remains committed to making
its current businesses more competitive while launching new network-based ventures. Sony is
working both to develop hardware products that allow the convenient enjoyment of large volumes
of content without troublesome operation and to put together a framework for high-speed content
distribution and interactive networking services. In this way, Sony is determined to create new
markets for the age of broadband networks.
The PlayStation2 game console employs nine devices produced internally within
the Sony Group. Shown above are, from right, a dual-wavelength semiconductor
laser coupler with DVD/CD compatibility, the Graphics Synthesizer image ren-
dering engine, and an optical pickup.