Many Netflix subscribers will find a rather inconspicuous red envelope in the mail today. It may look like a standard Netflix package, but inside PS3 owners will discover the "Instant Streaming Disc" which enables Netflix's instant streaming service on Sony's console.

We've embedded a video overview of the service above. We'll admit that there are a few qualms with the presentation so far. First, the activation process is slow and requires the use of a computer -- there is no way to activate Netflix directly from the PS3. (You won't be able to use the PS3 internet browser for activation purposes either.) Second, the loading of cover art is suspiciously slow. Finally, there is no way to directly manage your Queue from the interface. While you'll be able to browse various categories, there is no Search capability. One benefit the PS3 has over the 360 in this regard is the built-in browser. You will be able to use the PS3's internet browser to manage your Queue. It's a baffling additional step, but it certainly is an added convenience. (ProTip: Use SELECT to add a bookmark to your PS3 internet browser.)

While the previous video we posted suggested otherwise, we can confirm that HD video works on PS3, and it works well. In fact, it's a bit faster than watching SD content, simply because you won't have to wait for the PS3 to switch between resolution modes. When browsing your queue, look for a tiny HD icon at the bottom of the screen to see if it will play in high-def. (The selection can be quite limited.) When judging the overall experience, however, we'd say starting movies required a longer buffer than when using the service on the 360 or PC. Netflix is a terrific value-add for the PlayStation 3, but minor interface issues make it clear that there's a lot of room for improvement -- perhaps when Netflix becomes a standard built-in feature of the OS next year?

If you haven't heard, the PlayStation Wii is so successful, it pretty much prints money. Wait, Sony didn't make the Wii? Then how did the market analysts of DFC Intelligence come to the conclusion that "Sony was saved by the success of the Wii?"

According to DFC, the Wii's mainstream appeal forced Microsoft into a successful, but not entirely dominant position. "The main danger Sony faced was that the Xbox 360 would become embedded as the system of choice. Instead consumers flocked to the Nintendo Wii. The Xbox 360 had solid sales, but they have not been enough to give Microsoft anywhere near a breakout market position," the report explains.

Should enthusiasm for the Wii wane this holiday season, the recent price drop, coupled with with impending release of God of War III, finally positions the PS3 as a viable choice for mainstream consumers, the report notes. EEDAR's Jesse Divnich agrees, pointing out that Sony can finally utilize its leverage from the previous generation. "People who purchase a PS2 are more likely to purchase a PS3 in the future. Consumers, believe it or not, are pretty loyal."

Three years after the launch of the PS3, Blu-ray is also finally becoming a marketable feature for mainstream consumers, the report argues. "This holiday season Blu-ray movies are finally getting a major focus at retail ... Blu-ray clearly now becomes a strong selling point for the PlayStation 3." Undoubtedly, SCEA will create an ad that focuses on this aspect of the system that "only does everything."

While DFC's report comes off as incredibly bullish, it's understandable to see why there's some doubt over Sony's ability to capitalize on the moment. Let's not forget, this is a company that managed to fall from first to last place in the course of a year. "The cards are in Sony's favor and now is the time to make the most of them ... Now is the time for Sony to shine ... or else."

[Via CVG]

Source - Is it Time for the PlayStation 3 to Shine?
Source - How the venerable PlayStation 2 made it to 9 years old

Just a quick reminder to let everyone know that the 250GB PlayStation 3 is available now in North America. The package runs $349 and crams a console, 250GB hard drive, controller and composite AV cables into the box. As the more astute readers have no doubt realized, the only thing different from the 120GB model is the 250GB hard drive. Still, as Gaming Bits points out, that's more than twice the storage for an extra $50 over the $299 model.

Of course, with Black Friday sales just a few weeks away, you might consider waiting to see what deals will be available before taking the plunge.

We do not tire of SCEA's new ad campaign for the PS3, "It Only Does Everything." SCEA is rolling out two more for TV use, one specifically for the upcoming Ratchet & Clank Future: A Crack in Time, and another that highlights a variety of PS3 games in an exciting montage featuring Uncharted 2, Killzone 2, Gran Turismo 5, Assassin's Creed 2 and more. Kevin Butler's convincing performance as a 80s guitarist has us asking just one question: can he be our friend?

Earlier this week, we got our hands on a few European GameStop listings for 250GB PS3 bundles. Earlier today, SCEE and SCE UK confirmed the hardware packages and included games. Earlier this hour, we went to Whole Foods and purchased some really crisp bok choy. (Sorry. We got into a rhythm there.)

Europeans will have their choice of two bundles, both of which will be made available throughout October. One of the collections includes Need for Speed: Shift, while the other includes FIFA 10. Needless to say, both bundles come with the recently GB-boosted console. A price point for these two bundles has not been specified, but we've contacted Sony for clarification.

Bizarrely enough, the UK's getting a different set of bundles than the rest of the continent. On October 1, United Kingdomites will have their choice of a 250GB PS3 bundled with Infamous or two unnamed Platinum Hits. Their options will be further expanded on October 16 with the release of an Uncharted 2 bundle, and once more on October 19 with a bundle that includes the X-Men Origins: Wolverine and The Dark Knight films on Blu-ray and a film-friendly remote control.

SCE UK has graciously provided a price for its bundles -- £284.99 ($450) -- making it our certified favourite European Sony chapter of the day. That's as legit as being knighted by the Queen, you know.

Update: After the break, we've posted a snapshot of the FIFA bundle provided by a GameStop employee in Norway.

The 250GB PS3 is real! Sony is taking advantage of its exclusivity of Final Fantasy XIII in Japan by introducing a new bundle. For 41600 yen, Japanese gamers will get a special limited edition system with Lightning (the main character, not the weather condition) printed on the body. It'll be available for purchase on 12/17 (so importers, get ready!).

We'll upload images as soon as we get them. In the meantime, you can download Final Fantasy VIII from the Japanese PlayStation Store for 1500 yen.

With the exception of Valve, most developers have no qualms about developing for PlayStation 3. Sure, it's still far more "tempting" to work on the 360's accessible architecture, but most recent releases appear to have shaken PS3's earlier substandard multiplatform performance.

Most. Bayonetta developer, Platinum Games, recently admitted on its blog that it was not developing the PS3 version; instead, it handed off PS3 porting to Sega. Platinum Games' CEO Tatsuya Minami wrote on the company's official blog that Platinum would be "overseeing the progress to ensure that the PS3 version would be the best it could be." However, instead of saying both versions will run identically, he simply advises PS3 owners to "[play] the game for yourself and [come] to your own conclusions."

PlayStation commenters weren't too kind to Minami's admission, saying, "Platinum Games is trying to shift the blame to Sega" for what gamers fear will be a substandard port. History certainly gives their worries credence, but we'll find out for sure later this week at Tokyo Game Show.

[Thanks, sacra!]

With the revelation of the PS3 Slim and its accompanying price cut, it looks like things are really on the up and up for Sony. It seems that things are so up that many consumers may have difficulty finding a PS3 on the shelves. According to Stern Agee analyst Arvind Bhatia -- as reported on IndustryGamers -- strong "pent-up" demand may lead to PS3 shortages by the end of September. Furthermore, he expects that September sales of the console may climb as much as 75 percent over last year, possibly more if supplies hold up.

Finally, Bhatia noted that strong PS3 sales could affect sales of the 360 as well. The reason, according to Bhatia, is that the 360 Arcade SKU maintained its $199 price while the Elite price drop really amounted to no more than a replacement of the Pro tier. Joystiq would be remiss not to point out that the Elite bundle even received a few downgrades in the process.

Looks like Jack Tretton may have made that $1200 bet two and a half years too soon.

Yes, the 999% week-to-week sales increase that the PS3 reportedly enjoyed in the UK, after the release of the PS3 Slim, may seem a little ... astonishing, but we'd like to help you make sense of the sequence of events.

1. First, NOBODY bought a PS3.
2. Then, EVERYONE did.

It's great news for Sony, but terrible for the PS3 executive who promised to come up with a way to increase PS3 sales by 1000 percent. Better luck next time, Mr. Former Director of Cross-Budgetary Marketing Promotional Strategy.

Speaking to MCV, Microsoft EMEA VP Chris Lewis has proclaimed that Xbox 360's 9-million-plus European install base trumps PS3's recently projected 10-million-and-counting base. How is that possible, you ask? Simple. "We count installed base differently," Lewis explains. Of course!

In fact, Lewis takes the counting contention one step further. "We're confident we are actually around a million units ahead," he claims. While we're fairly certain both parties stick to the traditional "1, 2, 3" ... and so on convention, we suspect Lewis is arguing over just which "European" territories are at stake in this numbers game. SCEE pools its population from Europe, Australiasia and other territories outside of Japan, the rest of Asia and North America. Microsoft EMEA combines figures from Europe, the Middle East and Africa.

Kinda hard to wage a console war when the opposing sides are scurrying about different maps. So then, stalemate?

Did you hear? "It Only Does Everything." In addition to playing games, PS3 can perform a number of multimedia functions, many which will be highlighted in upcoming marketing materials. Central to PS3 is Blu-ray, Sony's proprietary HD movie format. Just as PlayStation 2 introduced the masses to DVDs, Sony planned to make PS3 the Trojan horse for this new disc format -- and it appears to be working.

SCEA's Eric Lempel spoke with Variety's Video Business, and he said that a significant majority of PS3 owners have tested its Blu-ray capability. "Right now, 74% of the users who have PS3s have spent time watching Blu-ray movies," he said. However, while PS3's key demographic of 20-something year old males may be allured by the 1080p boobs and explosions, Lempel says that PS3 can expand its audience through the PlayStation Network.

"Ever since we've introduced services like the video download service, we're getting more of the household on the PlayStation Network. Some of the top rentals and sales on the video side have been content that probably doesn't appeal exactly to that 28-year-old male. It's more those movies that are geared toward women," Lempel added. Perhaps that explains the success of the Zac Efron vehicle "17 Again" on the PlayStation Store versus the Blu-ray -- although who wouldn't want to see Efron's dreamy eyes in 1080p?

[Via Kotaku]

Maybe Sony read our blog and saw our complaining. SCEA is working on a brand new marketing campaign to promote the $299 price of the redesigned slim PS3. Unlike previous ads from Sony, some which involved creepy robot babies crying, this campaign is meant to be humorous and less abstract.

The figurehead for the new ads will be Kevin Butler, Director of Rumor Confirmation. Most likely, Sony will play on its apparent inability to keep the PS3 Slim (and simultaneous price drop) a secret. Don't expect Sony to eat too much humble pie, though. The previously uncovered "It Only Does Everything" slogan will be the official tag line for the campaign.

For more pictures of the upcoming ad, visit IndustryGamers.

The system wasn't the only thing that got smaller when Sony officially unveiled the slimmer PS3. The entire PlayStation branding has been reworked: the system is no longer PLAYSTATION 3 (all caps), it's PlayStation 3. The logo no longer uses the Spider-Man font to spell out the entire system name. Instead, marketing materials now feature three simple characters: "PS3."

Kaz Hirai explained the meaning behind the change to Times Online. The new logo represents a "reset" of sorts. Hirai explains that he wanted it to represent "going back to our roots."

There are practical applications to a revised logo, as well. "When you have PlayStation 3 spelt out, the aspect ratio was such that if you wanted it on a billboard it became tiny. It didn't work in terms of visibility," he admitted. We took a look back to this Call of Duty 4 TV ad to emphasize the difference: the Xbox 360 logo is more than twice as large as the now-outdated PLAYSTATION 3 logo. If you watched this ad on a SDTV, you probably wouldn't even notice the PS3 logo at all! While we're not entirely sure the new logo will have an effect on sales, we (and other games bloggers) are glad to finally give our CAPS LOCK keys a break. Thanks, Sony.

What can't the PS3 Slim do? [Play PS2 games? Run Linux? - Bitter Ed.] Sony's upcoming revised PlayStation 3 may be cheaper than a launch system, but it's already gaining a few very small, almost inconsequential features that help push it past the last generation of PS3s. In addition to the PlayStation 3's connectivity with Bravia televisions, the new PS3 will also be able to output Dolby TrueHD and DTS-HD Master Audio via bitstream.

Now, before you go chucking your old PS3 systems out the window saying "OMG it's totally worthless!" remember this: you should actually know what bitstream is and what it means to the average consumer. First-generation PS3s can output in TrueHD and DTS-HD MA, but they can only do so through linear PCM. While this works quite well for most receivers, some audiophiles need support for bitstream audio when handling uncompressed sound. If you're already getting confused by the terminology, fret not: the new PS3 has nothing you can really benefit from.

If you've been furiously mashing the refresh key on your Joystiq machine (also known as a computer), waiting for Sony to finally announce that the PS3 Slim will reintroduce PlayStation 2 backwards compatibility, we've got some sad news for you. Forget that silly patent that filled you with base, vile hope. The dream is dead.

Speaking to Ars Technica, Sony's John Koller has made it quite clear that backwards compatibility will never, ever, ever be coming back to the PS3. "It's not coming back, so let me put that on the table," said Koller, quite simply. He added that, "It's not as big as a purchase intent driver as you may be hearing," saying that most consumers are purchasing the console for PS3 games and Blu-ray movies.

So, to reiterate, no more backwards compatibility from now until the world moves on. And probably not after that, either.