DoCoMo to Debut i-motion-Compliant 3G Handset
Sony to Strengthen IP Strategy in Asia
DVD Forum Will Not Support Blue Ray Disc
Nintendo Pushes GameCube Sales
Microsoft Reveals Online Game Offering
Infineon Purchases Ericsson's Semiconductor Operation
Matsushita Electric and Mitsubishi Electric Co-Develop IC Manufacturing Technology
McDonalds Adopts Hitachi's PDP

NTT DoCoMo moved to introduce its seventh handset for use with its W-CDMA-based FOMA (Freedom of Multimedia Access) cellular network, the FOMA P2002, on June 13, 2002. The handset supports DoCoMo’s i-motion service, which allows users to simultaneously download and replay video and audio content. The handset is to be priced at around 30,000 yen ($231 @ yen 130/$US 1). The P2002 also supports a multi-access function, which enables simultaneous voice communication and packet communication. For instance, users can search the Internet while talking on the phone. The maximum downlink speed is 384 Kbps. On the uplink, the maximum transmission speed is 64 kbps. The handset features a 2.2-inch, 65,536 color TFD color LCD. The handset weighs 110g with 90-minute talk time and 55-hour standby time. [M. Robertson, Portelligent]

Sony Corporation plans to strengthen its intellectual property strategy in Asia, and in particular in China, according to reports in the Nikkan Kogyo Shimbun on June 10, 2002. Sony seeks to increase its patent filings overseas from an annual total of 3600 patents (1999 actual) to 5200 patents in 2002. The reason behind Sony strengthening intellectual property strategy in Asia and China is that Japanese firms are aggressively turning to China after China joined WTO (World Trade Organization). Foreign companies that wish to enter the Chinese market must first set up a joint venture with a local firm due to governmental restrictions. It is Sony’s intention to strike preferential deals with local partners by offering its intellectual property as an incentive, to win deals over its competitors with its strong patent portfolio.

Sony has been active in patent filing within Japan. The firm filed 8500 patents in Japan in 2000, making Sony the largest patent filing firm in the country. Sony plans to re-allocate resources and reduce patent filings in Japan and to concentrate on increasing patent filing overseas.

Sony’s patent filing in overseas offices is increasing constantly: 3500 in 1999, 4200 in 2000, and 5100 in 2001. In particular, Sony is increasing patent filings in China and Korea. [M. Robertson, Portelligent]

An industrial association that works to standardize DVD formats and promotes market expansion for DVD -- the DVD Forum – recently announced that it has begun standardization talks concerning next-generation optical discs, which use blue lasers in their read-write modules. The Blue Ray Disc format, promoted by both Sony and Matsushita Electric Industrial has not been included for consideration. The DVD Forum will focus discussion on two other standards and decide on details by the end of October 2002.

The two standards under consideration are: (1) a format which has the same cover layer thickness (0.6mm) as the existing DVD, and (2) a format in which the cover layer thickness (at 0.1mm) is much thinner, creating the potential to achieve very high storage capacity in the future (the Blue Ray Disc format also calls for a 0.1mm cover layer). The first approach has a 15-Gbyte capacity on each side of the disk. With double-layering technology, a maximum of 27-Gbyte capacity is achievable. The second method can support storage of 25 Gbytes on a side and, with double-layering, can potentially achieve up to a 45-Gbyte capacity. However, the second method gives rise to compatibility problems with current-generation DVD systems, and is still having problems in achieving double-layering and ROM replay.

Participants in the DVD Forum include manufacturers who want to commercialize recording devices that replace the VCR as soon as possible, as well as manufacturers who want to deploy new recording technology not only as a consumer entertainment recording device, but also as a ROM replay device and media for data recording in personal computers. Based on the input of participants, the forum will drive toward a decision on whether to support one method, or whether to support both standards for different purposes. The forum has not planned a meeting with the Blue Ray Disc alliance, suggesting that there will be at least two standards in the market. [M. Robertson, Portelligent]

On June 6, 2002, Nintendo’s CEO, Mr. Iwata, announced that the company has established a goal of shipping a cumulative 50 million units of its game console, the GameCube, by the end of March 2005. Nintendo plans to promote sales of the GameCube by emphasizing popular games. According to Mr. Iwata, games in the Mario and Zelda series are praised highly in Europe and the U.S. To keep producing such hit games, Nintendo will be aggressive in its efforts to develop game software in collaboration with software developers and venture firms. [M. Robertson, Portelligent]

A senior executive at Microsoft Japan, Mr. Oura, recently told the trade press in Japan that in fall 2002 Microsoft will begin offering an online game service, "Xbox Live," for use with its Xbox game console. Xbox Live will be operated as an online game service for users who have broadband Internet access. Microsoft will manage the Xbox Live gaming environment at four data centers located across the globe. Specifications on the software platform will be made fully available to game software makers. Client software will be available in retail channels. Users will be able to download game scenarios and other things, providing elements of variation that derive from a single game.

The Xbox Live starter kit, which includes Phantasy Star Online (PSO) by Sega and a one-year online service charge, will be priced at 6,800 yen ($52@ yen 130/$US 1). In addition to PSO, the starter kit will include a voice-chat headset and other games. The service fee for the second year of service has not yet been set.

According to Microsoft, worldwide sales of the Xbox reached 3.5 to 4.0 million in June 2002. In Japan, Xbox sales have been sluggish, due in part to the negative publicity that resulted from early vintage Xbox consoles scratching DVD discs. In a statement quite un-Japanese in its bluntness and bravado, Mr. Oura declared to the press, "After reducing [the Xbox] selling price from the original 34,800 yen ($268 @ yen 130/$US 1), we are in position to show our real strength. We will invest 250 billion yen ($1.92 billion) to reinforce our platform. With our know-how of the global online business, we will keep working until we become the number one player in the game industry." [M. Robertson, Portelligent]

German semiconductor Infineon will purchase Ericsson’s semiconductor operation, Ericsson Microelectronics (MIC), the two firms announced on June 12, 2002. The purchase, which will be achieved through an exchange of stock, is estimated as 400 million Euro. The deal is expected to close in summer 2002 after approval by the EC. Through this purchase, Infineon will become a strategic partner of Ericsson, and will supply critical wireless infrastructure and semiconductor devices for cellular phones to the Swedish telecom giant. Gaining Ericsson’s semiconductor unit means that Infineon will be able to expand its wireless component business in such areas as Bluetooth chip sets and wireless handset components.

According to reports in the trade press, the two firms intend to expand their collaborative relationship to include joint development of 2.5G and 3G wireless technologies. [M. Robertson, Portelligent]

Matsushita Electric and Mitsubishi Electric, both of Japan, announced on June 12, 2002, that the two companies had jointly developed new technology for manufacturing semiconductor chips. The new technology is capable of reducing circuit dimensions by about half. Through the introduction of new photolithographic techniques, the companies claim to have succeeded in reducing the space between transistors. The Matsushita/Mitsubishi technology, which targets the 90-nanometer generation of IC manufacturing believed to emerge as the mainstream in 2001, can pack 140 million transistors in 1 square cm. The smallest unit of SRAM storage, a cell size, was thus reduced in scale to about 1 square micron, or about half of what it was before.

Matsushita Electric and Mitsubishi Electric agreed to work together on the development of next-generation IC fabrication technology in late 1998. The two initially announced development of 130-nanometer-generation IC processing technology in June 2001. With the newer 90-nanometer technology, the companies are targeting commercialization in approximately two years. [M. Robertson, Portelligent]

Hitachi’s US subsidiary, Hitachi America, announced on June 11, 2002, that the company will install PDPs (Plasma Display Panels) for displaying menus in a McDonald restaurant located in New York City. The company will install 10 42-inch PDP displays. Using PDP monitors to display menus will make it easier for the restaurant to make adjustments when the menu changes. McDonalds will also install PDPs in a new branch located within a theater that has over 400 seats. This restaurant will open in July 2002.

Hitachi America has created a Digital Display Solution Group (DSSG) that has been aggressively marketing PDP systems to retail chains and franchise restaurants. With adoption of such system, menus can be controlled at a head location, rather than onsite at the actual restaurant, thus reducing costs. [M. Robertson, Portelligent]