Can Xbox beat PS2?
Sharp Announces Palm-Sized Video Player
Taiwan LCD Alliance Seeks to Purchase TFT-LCD Intellectual Property
Demand for Fingerprint-Verification Systems on Rise
Sharp to Release New MD Radio Cassette Recorder
Sony Unveils New PDA
House of Future: Open to Public for Limited Time
Pioneer to Introduce Necklace/Headphone
Sharp to Market High-Tech Microwave
Japanese Electronics Production Down 31.5 Percent for November 2001
Fujitsu Subsidiary to Acquire SAW Device Business Unit of Toshiba

Microsoft's Xbox will debut in Japan on February 22, 2002, entering what is arguably the world's most competitive game-machine market. Although the initial shipment quantity to the Japanese market has not been revealed, press reports indicate that 200,000 to 300,000 units will made available initially. In North America, where the Xbox was introduced in November 2001, approximately 1.5 million units have already sold. Microsoft plans to ship an additional 4.5 to 6 million units of the Xbox worldwide this year. However, even if this mark is achieved, it will be no easy task to catch rival Sony Computer Entertainment's (SCE's) PlayStation 2, which has sold over 30 million units globally so far.

The Xbox offers more sophisticated hardware than Sony's current PS2. In addition, the Xbox is designed in such a way that it can be readily connected to a broadband network, thus evolving into a multi-functional network terminal. According to trade press reports, Microsoft plans to market the Japan Xbox in two stages. During the first phase, it will emphasize the machine's hard disk drive and its audio performance. When broadband connections become available for use with the Xbox in Japan in fall 2002, Microsoft will begin to market the machine as a broadband terminal. When the Xbox is introduced in Japan next week, 12 game titles will be available, many of them sequels to existing game series or similar to games that already exist for other platforms. Although the machine's image processing and audio performance are attractive, it will be difficult for Microsoft to differentiate the Xbox from the PS2 on the basis of its initial game offerings, according to market analysts in Japan.

Sony Computer Entertainment, which has the leading share of the game-machine market on a unit basis, will begin its broadband offering in Japan for the PS2 before broadband is available for the Xbox. Connections for the PS2 to ADSL networks and optical fiber networks will be available through Softbank Group and NTT Group beginning in April 2002. In order to use the broadband service, users will need to spend an additional 18,000 yen ($138 @ yen 130/$US) for a broadband unit. SCE will offer installment payment plans and lease arrangements for the broadband unit, to appease users' resistance to making additional expenditures for accessory hardware. When this broadband service becomes available, however, only one compatible game will likely be ready -- "Final Fantasy XI." This may open a possible avenue to success for the Xbox, if Microsoft can arrange for the introduction of smash-hit online games that can be played only on the Xbox.

It is also clear that SCE is hardly content to stay behind in the hardware race. Engineers from Sony, Toshiba, and IBM are cranking up development of a super parallel processor to be used in PlayStation 3 (a provisional name) on the IBM campus in Austin, Texas. Its image-processing performance reportedly will be 160 times greater than that of the PS2. Sources indicate the PS3 will debut as early as in 2004. [M. Robertson, Portelligent]

Sharp Corporation of Japan announced the MT-AV1, a palm-sized video player, on February 7, 2002. The new device, which is the size of a portable MD (mini-disc) player, is capable of playing MPEG-4 video and MP3 audio. It features a 3-inch 336 x 220 pixel color LCD display. The MT-AV1 can be connected to TV and VCR through a cradle and can record video and audio. It also supports an SD (Secure Digital) card, enabling the transferring of video and audio files from a PC. The MT-AV1 has a 64 MB of built-in memory. While running in normal mode, the device can record 55 minutes of long-playing video using internal memory, and 120 minutes on a 128-MB SD card. It runs on a lithium-ion battery and lasts about one hour while playing MPEG4 video, and lasts about 3.5 hours while playing MP3 audio. The new video player is available in three colors -- pearl white, coral pink or aqua blue -- and will be sold for about 40,000 yen ($308 @ yen 130/$US1). Targeted towards females in their teens and 20's, a variety of colorful carrying cases and covering front panels are available for an additional cost. Pictures are available in Sharp's press release at the following website: http://www.sharp.co.jp/corporate/news/020207.html. [M. Robertson, Portelligent]

Seven TFT-LCD suppliers in Taiwan, all members of TTLA, the Taiwan TFT-LCD Association, are collaboratively seeking to license TFT-LCD patents to avoid possible legal problems with Japanese and Korean TFT-LCD manufacturers. In the past, many STN and TFT-LCD manufacturers in Taiwan received technology transfer from their Japanese counterparts, who were the pioneers of LCD technology, in order to get into mass production quickly. As Taiwanese LCD manufacturers' technical proficiency level has improved, Taiwan has moved to transform itself into a mass supply hub for TFT LCDs, thus, at least from the perspective of the technology sources outside Taiwan, threatening to bite the hands that fed it.

In November 2001, for instance, LG.Philips LCD claimed that two TFT-LCD suppliers in Taiwan were violating its intellectual property on a five-photo mask manufacturing process; LG.Philips LCD then demanded licensing agreements and royalty payment. More recently, Sharp filed a suit in Tokyo against CPT (Chunghwa Picture Tubes, Ltd.), claiming that the Taiwanese LCD producer had infringed three of its LCD patents. Taiwanese LCD manufacturers are concerned that more litigation may be following in the future, and that such legal disputes will hamper the growth of the island's LCD industry. In response, the Taiwanese industry has developed a plan to license all the essential patents through Electronics Research & Service Organization (ERSO), a national institution that is also a member of the TTLA, so that all the members of TTLA can then cross-license the intellectual property, putting them in an advantageous position against forthcoming claims from the Japanese and Korean rivals. TTLA's seven members include AU Optronics (AUO), Chunghwa Picture Tubes (CPT), Chi Mei Optoelectronics (CMO), HannStar Display, Quanta Display, Prime View International, and Toppoly Optoelectronics. [M. Robertson, Portelligent]

According to a January 30, 2002, report in the Nikkei Sangyo Newspaper, fingerprint verification systems are growing in popularity in Japan. Until recently, Japanese firms and consumers were reluctant to employ fingerprint registration systems, because of their association with police investigations and government authority. However, the September 11th tragedy in the United States and recent horrible crimes in Japan are changing the prevailing Japanese mindset about security.

A notebook PC, with access to confidential corporate data, is a must-have tool for sales representatives in the field for high-tech companies. However, there is always a fear that important confidential information could be lost if an unauthorized user gains access to the computer. Sony's sales subsidiary, Sony Marketing, will distribute notebook PCs equipped with fingerprint verification subsystems to all 4,000 employees in its sales force. Instead of typing in passwords, an employee identifies him or herself as the owner of the machine with a credit card-sized system that will only allow the computer to boot after the appropriate finger has been pressed onto a glass plate. Another company in Japan has installed a fingerprint verification entry-control system at the entrance of its office. Other than employees who have pre-registered their fingerprint in the system, nobody can unlock the entrance door.

The call for tighter security in Japan is not limited to large corporations. According to the report in Nikkei Sangyo, even a daycare facility in Chiba Prefecture is considering the replacement of a passcode-activated magnetic lock with a fingerprint verification system. A Sega-operated game arcade in Tokyo has a fingerprint verification system to control storage of tokens. The arcade will store unused tokens for customers, and then hand them back to the same customer, when he or she returns to the arcade the next time, after confirming their identity through fingerprint verification. In addition to improved security, Sega's token-handling costs declined significantly with the introduction of the new system. Sega is considering installing the system in all of its 500 game arcades in Japan. Sony, which is a supplier of fingerprint-verification systems, forecasts that the Japanese market for finger-verification systems will skyrocket to 2 million units in 2003, an increase of 13 times over 2000. [M. Robertson, Portelligent]

On February 25, 2002, Sharp will release the MD-F250 MD (mini-disc) radio cassette recorder. The MD-F250 can play not only CD/MD disks and cassette tapes, but also CD-R and CD-RW disks. The CD-Text compliant system supports ATRAC3 MDLP (MiniDisk Long Play) mode, enabling users to record up to 320 minutes of music on a single 80-minute MD disk. Weighing 5.6 kg, the product is open-priced. Sharp will initially manufacture 20,000 units per month. [Digitized Information]

Mr. Masanobu Yoshiba, President of the Sony Handheld Computer Company, unveiled a clamshell-style CLIE (Sony's PDA series) at PalmSource 2002, held in San Jose from February 5 - 8, 2002. Mr. Yoshiba, who was a keynote speaker at the Palm-sponsored event, held the prototype PDA during his talk so that the audience could see it. The thin PDA looks much like a clamshell-style cellular phone with a keyboard and an LCD screen placed inside of the handset. The unique feature of the new device is that the LCD screen can be twisted 180 degrees through the use of a hinge. When closed after twisting, it looks much like a traditional CLIE with the display on the front side of the unit. The PDA also appears to have a camera module embedded in the hinge assembly. Pictures of the prototype CLIE are shown at the bottom of the following link, http://ascii24.com/news/i/topi/article/2002/02/06/633400-001.html. Mr. Yoshiba did not comment on when the new Sony PDA might make its market debut. [M. Robertson, Portelligent]

JEITA (Japan Electronics and Information Technology Industries Association) will offer touring of the "House of Future" from February 1 to March 30, 2002. The model house equipped with advanced home information appliances is located in Hachioji City in Tokyo. The model house offers security and home care solutions that a typical consumer might face in real life. Some features can be added with as little investment as 500,000 yen ($3,846 @ yen 130/$US 1). Tour visitors can experience about 15 different systems, which include an entrance door combining a button-type non-contact key and fingerprint verification system, an automatic order system of items in the fridge, and a cellular phone-activated balcony cover (many Japanese households hang their laundry for drying in their balcony). JEITA expects 5,000 visitors to tour the House of Future during the period. [M. Robertson, Portelligent]

Pioneer Corporation of Japan will roll out a mobile stereo headphone set that can be worn as a necklace, the SE-CN50-S, on February 20, 2002. When it is not used as a headphone, the left and right ear pieces can be connected and then hung around the neck. Featuring a simple design in a silver finish, the headphone is primarily targeted at young women, but can also be worn by men. The retaill selling price of the SE-CN50-S will be about 3,000 yen ($23 @ yen 130/$US 1). Pioneer plans to manufacture 3,000 units a month. Pioneer is promoting the concept of wearing audio and image accessories as a fashion statement, dubbing the notion "Media Fashion." Pictures of the new headphone are available at http://www.pioneer.co.jp/press/release293-j.html. [M. Robertson, Portelligent]

Sharp Corporation will introduce on March 8, 2002, the RE-LCK, a combination of a conventional oven and a microwave equipped with a 5-inch touch-panel color LCD, along with an SD card slot. Users can download special recipes from Sharp's Web page to an SD card via their PC or PDA. By inserting the card in the oven, users can then get detailed instructions from the color screen while the oven temperature is set automatically. Sharp provides 160 recipes for the new microwave. The LCD, which supports video, can display the selected recipe on its screen, and visually show the user how the ingredients should be mixed together. The new microwave is priced at 130,000 yen ($1,000 @ yen 130/$US 1). Sharp plans to ship 2,500 units a month. [M. Robertson, Portelligent]

On February 6, 2002, the Japan Electronics and Information Technology Industries Association (JEITA) released Japanese electronics industry statistics for November 2001. In data that re-emphasizes the extent of the decline in the electronics industry, JEITA reported that total output plunged 31.5 percent year-on-year to 1,544.3 billion yen ($11.49 billion @ yen 135/$US 1). On a sub-sector basis, consumer electronics production for November totaled 169.5 billion yen ($1.26 billion), down 24.0 percent. Industrial electronics output dropped 27.7 percent to 723.3 billion yen ($5.36 billion). Electronic component and device production - including semiconductors and flat-panel display -- plummeted 36.9 percent to 651.5 billion yen ($4.83 billion).

Overall electronics production between January and November 2001 declined 15.0 percent year-on-year to 20,346.9 billion yen ($150.72 billion). More complete details in English are available at the JEIDA Web site: http://www.jeita.or.jp/english/stat/electronic/2001/product/pro_11.htm. [Digitized Information]

On January 30, 2002, Fujitsu Media Devices (FMD) and Toshiba reached an agreement whereby FMD will acquire Toshiba's surface acoustic wave (SAW) device business unit, effective April 1, 2002. FMD will take over business operations and capital equipment procurement, including the development and production equipment that FMD will need for SAW device production. The acquisition will allow FMD to leverage imaging and automotive SAW devices that have been developed by Toshiba, permitting the firm to expand its engineering capabilities to pursue further innovations in the newly-acquired SAW device business. [Digitized Information]