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PS3 video downloads coming in July

Sources suggest launch at E3

Sony will announce an online video service for PlayStation 3 (PS3) in the summer, possibly at the E3 exhibition in July at E3, according to reports.

The anonymous sources also said Sony has recently been in talks with various studios to license movies and TV shows for download from PS3 Store.

While the timing of such an announcement is unconfirmed, Sony has already alluded to plans to compete with Microsoft's Xbox 360 Marketplace for console video downloads.

PS3 review

"Many of you have been hearing rumblings about a video service that will allow you to download full-length TV shows and movies via PlayStation Network for North America," wrote Peter Dille, senior vice president of marketing for SCEA, in a blog post last week. "While I don't have any new announcements... it's already been confirmed that we'll be offering a video service for PS3 in a way that separates the service from others you've seen or used."

Sony has unsuccessfully tried to launch a digital download service twice before. Last year, the company sold Movielink to Blockbuster Video for $6.6m after disappointing sales of downloadable movie rentals. In March, Sony pulled the plug on its iTunes killer, Sony Connect.

In related news, Nikko Citigroup said it expects the PS3 to break even by August via the possible introduction of a smaller Cell processor (or a fully redesigned PS3 Slim) to reduce manufacturing costs. Currently, the PS3 sells at a loss, which is standard in the industry.

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