PACE MICRO SYSTEMS THREAD

The Big Trend
Consoles on a chip. Sony can now pack an entire PlayStation 2 on a single chip. Since making microchips is a classic economy of scale, expect a proliferation of integrated gaming devices. It has begun. For the holiday season, Sony launched the PSX in Japan, a box that combines a PlayStation 2, a satellite television tuner, DVD-recording, music/video playback and Ethernet networking. PlayStation Portable, a handheld device that will also play music and video, is due in the United States in the coming year. Microsoft's next generation Xbox is expected to integrate a variety of functions. Both companies are angling to have their hardware at the center of the digital living room. Nintendo, continuing down its quixotic path, claims it will stick just to gaming.