Speaking in a recent interview Sony CEO Howard Stringer outlined his vision for the evolution of the PS3 and the PlayStation Network.

“We developed brand new, absolutely incredible technology for the PlayStation 3 (PS3), but the cost was high. We've adopted a slightly different approach now, and are evolving the PS3 into a platform for web services,” Stringer told Nikkei Electronics Asia.

“A lot of people thought Sony's content download service was doomed, but it's in a pretty good place right now in the form of the PlayStation Network, available to PS3 users for network gaming, video, etc. The DRM is based on Marlin, an open scheme developed by consumer electronics companies and other companies.

“What does all this mean?” he added. “Very simply, it means that Sony has begun the transition from a closed system to an open one.

“Next we will be expanding the PlayStation Network to hardware other than the PS3, because the number of PS3 units sold puts a limit on the scale of the network possible. Sony has a vertical structure for each product line, an organisational structure that resists change, so it will take time to achieve this network growth. However, a large number of employees share my opinion on this.”

Stringer also praised rival Nintendo’s success in reading the market and uncovering “hidden customers.”

“The Wii from Nintendo Co Ltd of Japan is an excellent example. They didn't develop any unique technology; they just realised that there was potential demand out there for something different from conventional games, and thought about how to satisfy different demands from different age groups. They attained results that the PS3 hasn't; namely, generating profit from hardware sales.”