Sony MPK-THC O-ring User manual

Throughout history, curiosity has been a source of inspiration,
expanding the possibilities for the future.
The fun of discovery; the joy of creation; technology that goes beyond “convenience” to touch the hearts –
these concepts have driven Sony since its founding.
Quest for Curiosity: QRIO.
QRIO embodies Sony’s dreams and most advanced technologies in recognition,
motion control, communications, IT and AI.
Through QRIO’s continued growth and development,
Sony will pursue the infinite possibilities of curiosity.
The resulting technologies will be applied to a wide range of products and services,
beyond robots, to enhance the joy of life.
Let’s discover the future together!

1

2
Sony continued to face a challenging business environment during the fiscal year ended March 31, 2004. Nevertheless,
our sales increased as a result of higher sales to outside customers in the Electronics segment and higher revenue in the
Financial Services segment. Measures taken to bolster our lineup of electronics products proved to be particularly
beneficial. Our aggressive launch of new products in such categories as digital still cameras, flat panel televisions and
DVD recorders led to significant sales growth during the 2003 year-end holiday season. Operating income, in contrast,
fell sharply, primarily due to an increase in restructuring expenses and research and development expenses in new
businesses that will foster growth in the years ahead.
In the fiscal year ending March 31, 2005, we will concentrate management resources in businesses with significant
growth potential, making substantial investments in such areas as next generation, multi-purpose processors and other
key components and increasing the number of internally produced key components. By producing these components
internally, we will be able to build in added value — thereby differentiating them from the rest of the market. We are
planning to introduce more products that will be recognized as distinctly “Sony” in both the home and mobile electronics
categories, as well as innovative services, including an online music distribution service. At the same time, we will
continue to strengthen our operations through restructuring initiatives and take steps to improve the efficiency of our
product development and design. Through these and other initiatives, the Sony Group will lay a firm foundation for
growth and higher profitability in the mid- to long-term.
April 27, 2004
To Our Shareholders
Nobuyuki Idei Kunitake Ando
Chairman and Group Chief President and Group Chief
Executive Officer Operating Officer

33
Cautionary Statement
Statements made in this annual report with respect to Sony’s current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements about the future
performance of Sony. Forward-looking statements include, but are not limited to, those statements using words such as “believe”, “expect”, “plans”, “strategy”, “prospects”, “forecast”, “estimate”,
“project”, “anticipate”, “aim”, “may” or “might” and words of similar meaning in connection with a discussion of future operations, financial performance, events or conditions. From time to time, oral or
written forward-looking statements may also be included in other materials released to the public. These statements are based on management’s assumptions and beliefs in light of the information currently
available to it. Sony cautions you that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the forward-looking statements, and therefore you
should not place undue reliance on them. You also should not rely on any obligation of Sony to update or revise any forward-looking statements, whether as a result of new information, future events or
otherwise. Sony disclaims any such obligation. Risks and uncertainties that might affect Sony include, but are not limited to (i) the global economic environment in which Sony operates, as well as the
economic conditions in Sony’s markets, particularly levels of consumer spending; (ii) exchange rates, particularly between the yen and the U.S. dollar, the euro and other currencies in which Sony makes
significant sales or in which Sony’s assets and liabilities are denominated; (iii) Sony’s ability to continue to design and develop and win acceptance of its products and services, which are offered in highly
competitive markets characterized by continual new product introductions, rapid development in technology and subjective and changing consumer preferences (particularly in the Electronics, Game, Music
and Pictures segments); (iv) Sony’s ability to implement successfully personnel reduction and other business reorganization activities in its Electronics, Music and Pictures segments; (v) Sony’s ability to imple-
ment successfully its network strategy for its Electronics, Music, Pictures and Other segments and to develop and implement successful sales and distribution strategies in its Music and Pictures segments in
light of the Internet and other technological developments; (vi) Sony’s continued ability to devote sufficient resources to research and development and, with respect to capital expenditures, to correctly
prioritize investments (particularly in the Electronics segment); (vii) the success of Sony’s joint ventures and alliances; and (viii) the risk of being able to obtain regulatory approval and successfully form a
jointly owned recorded music company with BMG. Risks and uncertainties also include the impact of any future events with material unforeseen impacts.
Management Message
02 To Our Shareholders
04 “Continuing to be One of the World’s Leading Consumer Brands”
Nobuyuki Idei
07 “Operational Restructuring Aimed at Realizing Outstanding
Efficiency and High Added Value”
Kunitake Ando
Strategy
18 The Future of Key Components
24 Research and Development
28 Sony Craftsmanship
40 Convergence
– A Key to Sony’s Constant Transformation
• Home Electronics
• Mobile Electronics
• Game
• Entertainment
• Financial Services
• Other
Products
11 Sony Products File 01-06
• File 01 – Flat Panel Television “WEGA”
• File 02 – DVD Recorder “Sugoroku”
• File 03 – DVD Recorder “PSX”
• File 04 – PC “VAIO”
• File 05 – Digital Still Camera “Cybershot”
• File 06 – Video Camera “DVD Handycam”
Topics
36 At a Glance: Operating Performance Highlights
55 Sony’s Advertising Around the World
56 Corporate Governance
58 New Members of the Board and Corporate
Executive Officers
107 Investor Information
Report
30 The Inside Story from Sony’s
Nagasaki Fab
People
Sony with You
10 Claude Nobs
23 Eikou Sumura
34 Alejandro M. Lopez
35 Lance Lee
Financial Section
59 Consolidated Financial Information
105 Stock Information
106 Stock Acquisition Rights and Bond Information

44
Continuing to be one
of the world’s leading
consumer brands
– Nobuyuki Idei, Chairman
By successfully executing “Transformation
60,” Sony is enacting bold reforms that will
create new value and generate growth
What is your assessment of the current
operating environment, and what are
Sony’s primary goals in this environment?
The markets Sony is involved in are undergo-
ing dramatic changes. In the consumer elec-
tronics industry, we are witnessing rapid
advances in cutting-edge technologies in such
areas as networks and semiconductors. The
industry has been further thrust into an age
of mega-competition by the entry of new
participants from other industries and strong
economic growth in countries such as China,
India and Russia. The needs of customers are
becoming more diverse than ever, and ad-
vances in network technologies are creating
new ways to enjoy music, movies and other
content. The pace of change will only con-
tinue to accelerate.
Sony has been a fountain of groundbreaking
ideas since its inception in 1946. The transistor
radio, the Trinitron color television and
Walkman are just a few of our many innova-
tions that have altered people’s lifestyles. Sony’s
hallmark has always been its ability to identify
trends sparked by changes in the times and in
customer needs, and to use that insight to
create innovative products and services. Some
people believe that today’s remarkable pace
of change makes this a time of chaos. At
Sony, however, we believe this is a time of
unlimited possibilities and opportunities.
In this environment, it is vital that we initiate
reforms in order to remain a youthful, energetic
company for the 21st century. This is why we
formulated a group-wide mid-term corporate
strategy called “Transformation 60” (TR60),
scheduled for completion in 2006, Sony’s 60th
anniversary. Our objective is to position Sony as
a truly global company with an operating frame-
work capable of withstanding dramatic shifts in
business conditions. This will allow us to remain
one of the world’s leading consumer brands.
Sony’s aim is to continue to be a leading
consumer brand and evolve as a 21st-
century global company
To this end, Sony is implementing dramatic
structural reforms and a growth strategy
based on the convergence of management
resources
Can you explain TR60 in more detail?
TR60 can be thought of as having two central
pillars. One is a structural reform to enhance
our operational profitability. The other is a
growth strategy.
The first pillar is designed to enhance the
profit structure of our businesses. We are
doing this by cutting fixed costs through the
downsizing of our workforce and the consoli-
dation of our manufacturing, distribution and
customer service facilities. We are also endeav-
oring to reduce variable costs by reassessing
our strategy for the procurement of produc-
tion materials.
The second pillar, our growth strategy, posi-
tions home electronics, mobile electronics and
entertainment content as core businesses and
focuses on the convergence and centralization of
management resources within the Sony Group.
In the home electronics category, we believe
that the role of the television as the center-
piece of the living room will be enhanced by its
increasing ability to be linked up with other
electronics devices and access a wide range of
content. In the mobile electronics category, we
plan to accelerate the convergence of mobile
handset communication functions and audio-
visual functions, such as those found in video
cameras and digital still cameras, in a manner
similar to that in which functions have already
been added to cellular phones.
Concurrently, Sony is making substantial
investments in key components such as semi-
conductors that we believe are strategically
important. By increasing the proportion of
key components produced internally, we plan
to increase the proportion of added value
captured by our finished products. We believe
that this will further enhance the differentia-
tion of our products from those of our com-
petitors. An additional goal is to maximize
operating efficiency by leveraging information
systems to strengthen both our demand and
supply chain management operations.
Our convergence strategy for the entertain-
ment business is equally important. We plan to
capitalize on our entertainment assets in
music, pictures and games to increase the
value of our content. At the same time, we will
accelerate the convergence of entertainment
content and electronics products, building a
new business model that is suited to the net-
work era. Through these activities, we intend
to generate further growth in our entertain-
ment business, positioning us even more firmly
as a global media and content company.

5
“Transformation 60” is a road map for
transforming Sony into a global
company of the 21st century for the
year 2006, Sony’s 60th anniversary
Transformation 60
“Transformation 60” — a group-wide mid-term
corporate strategy
“Transformation 60” has set in motion sweeping reforms
for the entire Sony Group. The objective is to ensure that
Sony remains as one of the world’s leading consumer
brands in the 21st century by developing attractive
products, content and services.
• Initiate reforms to improve Sony’s profitability
• Execute growth strategies by clearly defining Sony’s business
categories and focusing the allocation of strategic technological
and management resources

66
How did Sony perform in the fiscal year
ended March 31, 2004 vis-à-vis its mid-term
corporate strategy TR60?
Sales for the fiscal year ended March 31,
2004 increased 0.3% to ¥7,496.4 billion. Due
to restructuring expenses, operating income
fell 46.7% to ¥98.9 billion.
In the Electronics segment, we focused on
strengthening our product lineup. Sales of flat
panel televisions increased significantly. We
expanded our LCD and plasma television
product lineups, and Grand Wega, our rear-
projection television achieved substantially
higher sales, especially in the U.S. We intro-
duced several new DVD recorder models,
which led to an increase in our market share
from late 2003 to the spring of 2004. In the
intensively price competitive digital still camera
market, the success of our best selling
product, contributed to profitability. We also
retained our leading market share in the video
camera market, which remains the most
profitable category in the Electronics seg-
ment. In the PC market, another area of fierce
competition, we significantly increased profit-
ability in our VAIO business by focusing on
value-added models.
In the Game segment, total cumulative
production shipments of the PlayStation 2
(PS2) consoles surpassed 70 million units.
Software remained strong, too, as the annual
number of units shipped increased, proving
that the PS2 business is still in its peak years. In
the Music segment, past restructuring initia-
tives have resulted in significant improvements
in profitability, allowing us to record an oper-
ating profit, compared with an operating loss
in the previous year, despite the continued
contraction of the global music industry. The
Pictures segment achieved record-breaking
revenues on a U.S. dollar basis due to higher
sales within the television business. In the
Financial Services segment, higher insurance
revenues, along with an improvement in
valuation gains and losses from investments,
contributed to an increase in both revenue
and profit. In April 2004, we established Sony
Financial Holdings Inc. (SFH). This financial
holding company will play a pivotal role in our
drive to create synergies among our life insur-
ance, non-life insurance and banking busi-
nesses, and to increase the total value of our
financial services business.
What are Sony’s primary objectives for the
fiscal year ending March 31, 2005?
I view the current fiscal year as a time for Sony
to firmly execute the fundamental strategies
that were formulated in the previous fiscal year.
In the Electronics and Game segments, we
will accelerate our convergence strategy and
one of the goals is to introduce highly attrac-
tive products in both the home and mobile
electronics categories. In the home electronics
category, we intend to accomplish this by
aggressively pursuing superior display picture
quality and increasing the speed and capacity
of storage devices. We will introduce a rear-
projection television with a high resolution
display device and a home server with more
than a terabyte of storage capacity. In the
mobile electronics category, through close
cooperation with Sony Ericsson Mobile
Communications AB, we will promote the
convergence of our electronics products and
wireless technologies in products such as
cellular phones and wireless LANs. New
mobile products in the pipeline include
PlayStation Portable (PSP), a handheld video
game system, and a cellular phone equipped
with FeliCa, a contactless IC card technology.
We will also continue to invest strategically in
key components such as semiconductors.
Examples of ongoing development projects
include the Cell, a next generation multi
purpose microprocessor; imaging devices like
CCDs and CMOS image sensors; display
devices; and storage devices.
As for our entertainment business, our
entertainment and electronics businesses
joined forces in May 2004 to launch a music
download service called Connect in the U.S.,
and to introduce new Sony products compat-
ible with this service. We will see more con-
vergence between our entertainment and
electronics businesses. At the same time, we
will continue to strengthen our capabilities in
content development and develop new busi-
ness models for the coming network era.
I firmly believe that Sony will remain a
leading consumer brand in the 21st century.
Sony will continue to be a company that
evokes fascination and excitement among its
shareholders and investors, as well as among
its customers, employees and other stake-
holders. The management team is dedicated
to building a new foundation that will sup-
port expansive growth in the years ahead.
While continuing to be a company that evokes
fascination and excitement, the management
team is working together to build a foundation
for future growth

77
Phase 2 structural reforms are a vital element of “Transformation 60.” Here,
President Kunitake Ando discusses these reforms and his vision of Sony’s future
Operational restructur-
ing aimed at realizing
outstanding efficiency
and high added value
Total:
¥168.1 billion
None of the above
Total:
¥168.1 billion
Pictures
Music
Electronics
Asset sales and disposals
Early retirement
85.2
6.4 5.7
2.7
79.4
20.6
Breakdown of Restructuring Expenses Recorded in the Fiscal
Year Ended March 31, 2004
(%)
Structural reforms are an important element of
“Transformation 60” (TR60), Sony’s mid-term
corporate strategy. Would you tell us more
about these reforms?
In 1999, Sony embarked on the first phase of
structural reforms, which included consolidating
operating bases and reducing its workforce. These
reforms produced some benefits. However, the
pace of change in Sony’s operating environment is
accelerating, as evidenced by rapid technological
progress, particularly with respect to semiconduc-
tors, and industrial realignment. To assure Sony’s
continued growth as one of the leading consumer
brands, TR60 sets forth a second phase of struc-
tural reforms, focusing primarily on our electron-
ics business. These reforms are designed to create
an efficient, value-added operating framework
befitting a leading global company. In concrete
terms, we intend to strengthen our operating
structure through cuts in fixed costs and production
material and other variable costs, and the genera-
tion of more added value within the Sony Group,
thereby creating a foundation for implementing a
growth strategy.
For this purpose, we are implementing structural
reforms centered on five themes: (1) intensifying
our focus on strategic businesses; (2) accelerating
reform in global manufacturing activities;
(3) streamlining administrative, sales and market-
ing operations; (4) transforming design processes,
quality management and the procurement of
production materials; and (5) restructuring the
procurement strategy for non-production materi-
als. In the fiscal year ended March 31, 2004, the
Sony Group, through the implementation of
initiatives to reduce fixed costs, recorded restruc-
turing expenses of ¥168.1 billion.
7

8
Accelerating the identification of, and focus on,
strategic businesses and shifting management
resources from mature to strategic product
categories
Please outline Sony’s plans to tighten its focus on
strategic businesses, one of the themes of the
structural reform program.
Naturally, improving earnings in the Electronics
segment, which accounts for more than 60% of
Group sales, is a central element of our profit–
structure reform measures. In our consumer elec-
tronics business, product life cycles have become
much shorter due to the increasing speed of tech-
nological progress. To focus on strategic busi-
nesses, we are dividing our electronics business
into two product categories, strategic and mature.
We are concentrating our product design and
development resources in strategic product catego-
ries where future growth is expected, such as flat
panel televisions, home servers and mobile devices.
We expect this will lead to higher efficiency and
business expansion.
To add more value to products in strategic
categories, it is essential to strengthen our lineup
of semiconductors and other key components, as
well as to produce a larger share of these compo-
nents internally. With this in mind, we established
a new unit to centralize the management of the
Sony Group’s semiconductor business. The aim is
to make our semiconductor business more com-
petitive through unified strategies. In the fiscal
year ended March 31, 2004, we designated flat
panel televisions, DVD recorders, digital still
cameras, video cameras and VAIO PCs as strategic
products. We strengthened and expanded our
product lineups in these categories and introduced
new models in a timely manner. This focus pro-
duced enormous benefits during the 2003 year-
end holiday season.
In contrast to sales in strategic product catego-
ries, sales in mature product categories are ex-
pected to fall as a share of total sales. However, we
intend to raise efficiency and maximize earnings in
mature product categories by upgrading the design
and production capabilities of our manufacturing
units, as well as by outsourcing work.
efficiency of our administrative functions.
Along with these measures, we are revising
personnel systems in Japan. In line with the prin-
ciple of matching compensation with contribu-
tion, we will rigorously implement a merit-based
compensation structure. Our plans also include
enhanced diversity in our workforce and our
employment structure. Through these and other
efforts, we are building new kinds of relationships
between Sony and its employees.
Greater cost reduction through group-wide
initiatives
How is Sony transforming design processes,
quality management and the procurement of
production materials?
We are now pushing through far-reaching reforms
in design processes, quality management and the
procurement of production materials—domains
that support the fabrication of products. In the
area of product design, we are raising efficiency
through the extensive use of standardized design
technologies and components, and becoming
more competitive by sharply reducing the time
required to formulate new designs. For production
materials, we are strategically cutting costs through
the standardization of components and the con-
centration of procurement with specific suppliers.
Quality is the highest priority of any manufac-
turer. During the fiscal year ended March 31,
2004, we initiated an exhaustive and group-wide
review of quality-related systems. We will execute
initiatives to enhance quality so that we can deliver
high-quality products to all customers.
Transforming Sony into a leading global
company through TR60 reforms
Please describe what Sony is seeking by carrying
out this second phase of structural reforms.
At Sony the most important theme is building a
powerful operating framework that can constantly
deliver products and services worthy of the Sony
name, even when our markets are undergoing
dramatic changes.
Reforms are inevitably accompanied by challenges.
The Sony Group is fortunate to have employees
who have the motivation to embrace these chal-
lenges. Our reforms and growth strategy, progress-
ing side by side, will ensure that Sony continues to
grow as a leading company on the global stage.
(as of May 2004)
Accelerating reform in manufacturing activities
What steps are you taking to accelerate the
reforms of global manufacturing activities?
The goal of our manufacturing reforms is to
achieve a qualitative shift from assembly-oriented
manufacturing to knowledge-intensive methods.
To accomplish this goal, we are reinforcing the
role of global manufacturing bases in adding value
to products. At the same time, we are reviewing
our existing manufacturing systems and overhaul-
ing design and production systems to better reflect
the characteristics of each regional market.
At each of our manufacturing facilities, we are
enhancing the technical skills involved in design and
production activities, both of which are essential to
making competitive products. Concurrently, we are
integrating the existing design, production, cus-
tomer service and logistics functions of factories to
establish a more sophisticated supply chain manage-
ment system. This will enable us to strengthen our
Customer Front Center (CFC) activities, which
connect us directly to retailers and end users. Based
on this concept, we are restructuring design, manu-
facturing, logistics and customer service functions
on a global scale. We will also implement factory
realignments and consolidations as part of this
restructuring process. Ultimately, we expect to see
higher efficiency in all manufacturing activities.
Streamlining administrative, sales and market-
ing operations
What kind of structural reforms are planned for
administrative, sales and marketing operations?
We are streamlining administrative, sales and
marketing operations mainly in Japan, the U.S.
and Europe. One way we are accomplishing this is
by building common platforms that can perform
administrative functions for many business units
and sites. Another is by raising white collar pro-
ductivity through reviews of administrative busi-
ness processes and the greater use of IT systems.
In the U.S. and Europe, we are consolidating
our operational bases in each region. In our U.S.
electronics business, for example, we are relocating
our marketing groups so that they may be closer to
our engineering, manufacturing and other head-
quarter functions. This move will naturally foster
greater levels of cooperation and communication,
thus strengthening our design, manufacturing, sales
and marketing operations as well as increasing the

9
Phase 2 Structural Reforms
(1) Intensifying our focus on strategic businesses
(2) Accelerating reform in global manufacturing activities
(3) Streamlining administrative, sales and marketing operations
(4) Transforming design processes, quality management and
the procurement of production materials
(5) Restructuring the procurement strategy for non-
production materials
Building a powerful operating framework
through structural reforms

10
Claude Nobs CEO, Montreux Jazz Festival
Born in Switzerland in 1936, Claude Nobs gave up a career as a chef to found the Montreux Jazz Festival in 1967. Now a 17-day event held
every July and attended by 200,000 people annually, the festival has grown to feature a wide range of music, from jazz to blues and rock.
Montreux Jazz Festival URL: http://www.montreuxjazz.com
Sony is dedicated to creating dreams and experiences that make our
lives more enjoyable and enriching. In this section, we introduce four
Sony enthusiasts who work closely with Sony products every day.
Producer of the
Montreux Jazz Festival,
held annually on the
shore of Lake Geneva
in Switzerland, Mr.
Claude Nobs is a big
fan of Sony products.
A stellar performer at the Montreux Jazz Festival
Surrounded by Sony at home and in
the studio
Sony products, especially my P900 Sony Ericsson cellular phone, are an
essential part of my life at home and at the Montreux Sounds Video
Studio. At the studio, I use an XPRI HD (high-definition) non-linear
video production system for editing and transferring material. I also
have a D-2, Digital Betacam, Betacam SP (Super Performance) and IMX,
which I use to make copies of video clips in various formats. At home,
my favorite Sony products are my PX40 projector and 50-inch plasma
television. They’re perfect for showing my jazz festival HD video
recordings to important guests and artists. So hardly a day goes by
without Sony.
Outstanding perfor-
mance and ease of use
I really count on Sony at the
Montreux Jazz Festival; all my HD
video and audio recordings are
made using Sony products. One of
the best things about Sony
products is their compatibility,
even between consumer and
professional equipment. And
thanks to the compact size of Sony
video cameras and digital cameras,
I’ve been able to assemble an
extensive library of candid shots of
many artists.
A fascination with innovation
When Sony comes out with a new product, I buy it immediately. I recall buying the first Sony Walkman and
CD player as soon as they went on sale in Europe. I also bought the first SACD (Super Audio CD) player
model and the very first VAIO PC, even though the instruction manual was only available in Japanese. And
I’ve even owned three generations of AIBO entertainment robots.
The late Ray Charles performing at the 1991 Montreux
Jazz Festival

11
Sony
Products File
01–06
A look inside Sony’s DNA
“To establish an ideal factory that stresses a spirit of freedom and open-
mindedness, and where engineers with sincere motivation can exercise their techno-
logical skills to the highest level”
This statement of the purpose of incorporation from Sony’s Founding Prospectus
continues to define “Sony’s DNA,” guiding the activities of Sony engineers who
develop new technologies and products. Today, those tackling the challenge of
devising new Sony products are motivated by a single thought—to create unique
products that inspire and bring joy to consumers. The following pages take a close
look at some of these products through interviews with the developers who helped
bring them to life.

12
Making the television experience
more realistic and user friendly
Powered by Wega Engine
High-definition technologies and high resolution
differentiate Sony’s televisions
Sony has almost half a century of experience in
television development. Throughout its history,
Sony has pursued the ideal in picture quality—
“realism”—by bringing transparency, depth,
sharpness and vibrant color together on the
television screen. The Trinitron television, Wega,
the culmination of Sony’s efforts to create the
ideal picture, has inspired and impressed people
everywhere.
The arrival of the broadband era has created an
environment ripe for enjoying an array of content
at home. Moreover, with digital broadcasting
becoming mainstream, demand is expanding for
televisions with higher resolution. To achieve the
same remarkable picture quality made possible
by the Trinitron display technology in plasma and
LCD televisions, as well as in the Grand Wega
rear-projection television, in 2001 Sony embarked
on a project to develop Wega Engine, a high-
quality, integrated digital picture system, that
capitalizes on Sony’s image processing expertise.
The most distinguishing feature of Wega
Engine is its ability to adapt to the characteristics
of various display devices, digitally processing a
variety of input signals to generate an exception-
ally sharp and realistic picture. Drawing on the
expertise of Sony engineers with decades of
experience in analog signal processing, the Wega
Engine’s circuitry can produce a high-quality
picture from digital and analog input signals alike.
The Wega Engine’s picture was created by opti-
mizing the four key elements that determine
image quality—brightness, contrast, color com-
patibility and sharpness—and was evaluated
extensively in line with Sony’s “realism” ideal.
With Wega Engine, Sony has succeeded in
combining imaging technologies it has cultivated
over the years to create a new digital technology.
This has facilitated the development of a televi-
sion with a picture so realistic that it can, for
example, precisely reproduce the natural color
and depth of a red flower, thereby creating an
entirely new dimension of viewing excitement.
Wega Gate and Studio Application—Intuitive
controls for enhanced enjoyment
Today’s televisions often come with complicated
remote controls with multiple buttons and thick
owner’s manuals that confuse many users. After
giving considerable thought to this problem,
Sony’s Product Planning Managers came up with
Wega Gate. A push of the Wega Gate button on
the television remote control brings up a control
panel on the screen that enables the user to per-
form a variety of tasks intuitively. Sony has also
developed Studio Application, which allows users
to watch digital images from a video camera
Handycam and television programs stored in a
VAIO PC on a Wega television. This function was
developed in response to user demand for the
ability to copy recorded television programs and
other content onto a Memory Stick for viewing on
cellular phones or personal digital assistants. With
its firm commitment to both picture quality and
ease of use, Sony achieved the leading share of the
global television market* in the fiscal year ended
March 31, 2004.
*Indicates share of the total global market (by value) for
CRT, rear-projection and flat panel televisions.
Enjoy a realistic television picture
anytime, anywhere
Television powered by Wega Engine
technology
With the Wega Engine’s high-quality
picture image circuit, users can enjoy the
same breathtaking picture on any
television—LCD Wega, plasma Wega or
Grand Wega.
Studio Application, a function
that combines Sony’s expertise
in many fields
Record television programs onto a
Memory Stick and enjoy watching them
anywhere on cellular phones or personal
digital assistants.
A stylish remote control that’s
easy to use
The Wega’s aluminum remote control
reflects Sony’s commitment to style and
functionality. Operation is as easy as
pressing the Wega Gate button and using
the jog dial to navigate the control panel
on the television screen. The jog dial
enables the smooth execution of desired
actions from the control panel menu,
which is arranged conveniently by
function.
http://www.sony.net/
File 01: Flat panel television “WEGA”
[KDE-P61-HX2N]
Yoshihiro Yamamoto
General Manager
Systems Technology Section
Display Solutions Department
Home Electronics Development Division
Home Electronics Network Company
Noriyasu Yamada
Product Planning Manager
FTV Product Planning Section
Product Planning Department
Television Business Division
Home Electronics Network Company
The Wega Engine’s high-quality picture image circuit

13
Automatic recording of your favorite programs
and many other amazing features
Introducing a DVD recorder with intelligent
recording functionality
Sony has earned a solid reputation for devising
new ways to record television programs through
the launch of such products as the Clip-On hard
disk recorder and the CoCoon channel server. As
the market for DVD recorders began to take off in
early 2003, particularly in Japan, consumers and
retailers began to have high expectations for the
Sony DVD recorder. Determined to develop a
unique DVD recorder, a team of Sony engineers
were at that time involved in the Sugoroku
(“amazing recording”) Project, the goal of which
was to develop a DVD recorder like no other.
Sony’s Sugoroku DVD recorder was an immedi-
ate hit following its fall 2003 launch in Japan. The
unit is packed with intelligent recording functional-
ity. First, in order to appeal to the large number of
Japanese customers who record TV programs, the
unit features DVD+RW/-RW/-R disc compatibility. It
also incorporates an electronic program guide
(EPG), along with an automatic recording function
based on keywords. For example, if a user enters
“football” as a keyword, the unit will search
through the EPG and record programs that are
associated with “football.” In addition, the HQ+
recording mode allows users to make high-quality
recordings of programs. To store programs recorded
through the automatic recording and HQ+ record-
ing modes, the unit has a 250GB hard disc drive
(HDD) with enough space for up to 325 recorded
hours. The Sugoroku DVD recorder was made
possible by a combination of the engineering
team’s determination and accumulated know-how
within the company.
The HQ+ recording mode for outstanding
picture quality and Dynamic VBR Dubbing—
The pride of Sony engineers
The Sugoroku DVD recorder has many technolo-
gies that cannot be found on conventional models.
One technology is the HQ+ recording mode, which
records a program onto the hard disk at a rate of
approximately 15Mbps. This recording mode is
based on a technology that Sony engineers had
long been working on for producing recordings
with a picture quality indistinguishable from that of
a live broadcast.
Dynamic VBR Dubbing, a new technology used
for dubbing programs from the hard disk to a DVD
has also been successful. Inspired by methods used
to create software for DVDs such as movies etc.,
Sony engineers succeeded in minimizing picture
degradation by allocating the optimum amount of
data based on the amount of information con-
tained in each scene, when a program is recorded
onto the DVD. This makes it possible to make
high-quality dubbing, efficiently utilizing the
capacity of DVDs. It also allows dubbing onto
both DVD+RW and DVD-RW/-R formats.
I want to copy something onto
a DVD as quickly as possible
Recording from the HDD to a DVD-R can
be performed at a maximum speed of
24x, so it only takes about 150 seconds
to copy a one-hour program. It’s also
possible to delete unnecessary scenes
when making a copy.
Setting up a program recording
has never been easier
Simply choose a program that you want to
record from the electronic program guide
(EPG). Search for a program recorded on the
hard disc drive (HDD) by its title or use the
keyword recording function, which takes full
advantage of the EPG, to automatically
locate and record all programs related to a
particular keyword. With the “Manage
game extension” function, the recording
time of the baseball game or soccer match
will be extended automatically so that you
don’t miss the end of the event.
Compatibility with various disc
formats for stress-free
recording
Dual RW compatibility means the unit
can record and play DVD+RW and DVD-
RW discs, both rewritable formats. It also
accepts DVD-R discs, providing even
more versatility.
I want to record programs
without worrying about how
much space is left on the HDD
Equipped with a large capacity HDD, the
unit can store many hours of programs,
even those recorded in the highest
picture quality mode. Worrying about
the amount of time left on a videotape
is a thing of the past. Simply record the
programs you want and enjoy them at
your leisure.
I want the same picture quality
even after watching a
recorded program repeatedly
The unit is equipped with both HQ+, a
high-quality recording mode, and
Dynamic VBR Dubbing, a function that
enables high resolution dubbing of
programs to a DVD. Both allow you to
enjoy high-quality recordings of your
favorite programs over and over again.
File 02: DVD recorder “Sugoroku”
[RDR-HX10]
Yoshihiro Saitoh
Recorder Strategy Manager
Product Planning Section 1
Product Planning Department
Video Group
Home Electronics Network
Company
Hitoshi Hiraga
Senior Manager
Section 1
Department 1
DVD Division
Video Group
Home Electronics Network
Company
Jun Watanabe
Senior Manager
Section 4
Video Products Software Department
Software Technology Division
Home Electronics Development Group
Home Electronics Network Company
http://www.sony.net/
Sugoroku’s EPG

14
PSX—A world of entertainment in one box
An industry first: The convergence of games and
electronics in a single unit
Enhanced user control thanks to a GUI that is
supported by PlayStation 2 technology
PSX arose from the idea of making a consumer
AV product using state-of-the-art semiconductor
technology developed for PlayStation 2 (PS2)—
the world’s number one home gaming system,
from Sony’s game business. PSX drastically alters
the image of DVD recorders, with differences
extending far beyond its functionality and design.
The feeling of direct control that users experience
is unlike that of any conventional AV device. How
did Sony accomplish this? The answer lies in two
semiconductors at the heart of PS2: the
EmotionEngine (EE) CPU and the Graphics Syn-
thesizer (GS) image processor. In PSX, both the EE
and GS are on a single chip, a feat made possible
by Sony’s unprecedented advances in semicon-
ductor engineering and manufacturing. Further-
more, the tremendous amount of time and
energy taken by engineers to perfect the graphi-
cal user interface (GUI) is reflected in its unparal-
leled usability. Their efforts were not wasted. The
GUI is by far the most popular feature of PSX.
A world of entertainment
Enjoy television, DVDs, music, photos and games on
a single unit
Sony had a simple objective: to create a compre-
hensive entertainment device that can be enjoyed
by everyone, not just a particular user group.
Priority was thus placed on engineering a product
that maximizes usability while providing such basic
functions as an electronic program guide (EPG) for
television timer recording, a high-capacity hard
disc drive (HDD) for recording and a DVD recorder.
As a comprehensive entertainment device, the
PSX houses music, photo and game functions, in
addition to the DVD recorder. Recording music
CDs to the HDD transforms PSX into a jukebox.
Inserting a Memory Stick from a digital still
camera allows you to view photos on a large
screen television. Or you can simply enjoy a PS2
game. PSX is packed with possibilities.
The new PSX model, released in July 2004, has
up to 50 DVD menu, making it easy to choose
from your favorite titles when recording material
onto a DVD, making PSX an increasingly powerful
means of enjoying a world of entertainment
content from the comfort of your living room.
The achievement of a team of engineers who
were willing to tackle unprecedented challenges, PSX
is the first product line to result from Sony’s conver-
gence of its electronics and game technologies.
Yuichi Yazawa
Senior Manager
Section 2
Video Products Software Department
Software Technology Division
Home Electronics Development Group
Home Electronics Network Company
Kenji Matsuoka
Senior Manager
Product Planning Section 2
Product Planning Department
Video Group
Home Electronics Network Company
The remote control should be
simple and fun to use
The cross-shaped menu, with controls
aligned vertically, permits smooth and
speedy operations. Press any button
and the action on the screen will
immediately stop, as the image fades
into the background. Never before has
the operation of a remote control
been so easy.
I want a design that goes
with my living room décor
PSX has a stylish design and is only
312mm in width, permitting the unit
to be placed vertically if desired.
Translucent white was chosen so that
the unit would be a handsome
addition to any room.
I want to connect my PSX to
lots of other equipment
PSX comes with a game controller
port, a network port for online
gaming like that on PlayStation 2
(PS2), a USB socket for PS2-
compatible keyboards and
peripherals, a Memory Stick slot and
much more.
I want the freedom to be
able to play games even
while recording a television
program
PSX is compatible with both
PlayStation and PS2 software and
online games. You can even play
games while recording a television
program.
http://www.sony.net/
File 03: DVD recorder “PSX”
[DESR-7100]

15
Chapter two of the VAIO story:
Television picture quality on your PC
Picture quality virtually indistinguishable from an
LCD television—The VAIO type V’s picture quality
has broken the conventions for a PC
Since its debut in 1996, VAIO PC has enhanced
the AV experience of the user through the con-
vergence of audio and visual contents and Sony
took the industry lead through the introduction of
a function that allows users to watch television on
their PC. However, watching television on a PC
used to present problems as, due to the limita-
tions of the PC format, the quality of the televi-
sion images tended to deteriorate as the screen
size increased. In the search for a solution to this
problem, the developers of VAIO turned their
attention to the television technology of Sony’s
Wega, which facilitates outstanding picture qual-
ity. This technology uses a powerful IC chip that,
through Sony’s unique high-quality picture image
circuit Motion Reality, allows the high-quality
display of video images. The engineers thought if
this chip could be utilized, they might be able to
produce images of television quality on a PC
screen. At this point, the developers of VAIO
embarked on a project that would confound the
conventional logic of the PC.
Until then, problems involved with viewing
television on a PC screen had been overcome
through the clever utilization of software or the
optimization of hardware performance. However,
whereas a television screen displays a single, full-
screen image, on a PC the user has the ability to
alter the size of the window, containing the
image as they see fit. Therefore, to produce a
television-quality image on a PC, engineers had to
overcome the challenges of adapting a chip
originally developed for AV devices; optimizing its
performance for the PC; and allowing television-
quality images to be displayed on the adaptable
window sizes of a PC.
VAIO type V is the result of these efforts. Its
20-inch screen generates television images with
quality on a par with those of an LCD television.
With its dazzling picture quality, this new VAIO is
pioneering uncharted territory for PCs.
Never before could a PC have delivered this kind
of enjoyment
But even then, Sony’s engineers chose not to stop
If VAIO type V can be used like a television, then
why can’t it also be used, at the user’s discretion,
to watch television anywhere in the home? To
allow this, the new VAIO has a tilting mechanism
that can be used to angle the screen downward,
a first for a PC. But there’s much more: a 360-
degree swivel stand; a wireless keyboard and
mouse; speakers that deliver high-quality dynamic
sound over a larger area; minimal fan noise; and
much more. All these features add up to make
the VAIO type V everything its creators intended:
a revolutionary PC that is as easy to use as a
television. The PC is also installed with an MPEG
hardware encoder board that can make high-
quality recordings of television programs. A single
remote control handles everything from television
functions to hard disk recordings and DVD opera-
tions. The concept of AV and PC convergence,
central to the VAIO lineup, is now entering a new
phase—one that will open up a new chapter in
PC history.
Yoichiro Hachiya
Assistant Manager
Product Planning Dept.
IT Company
IT & Mobile Solutions Network Company
Naoki Kameyama
Senior Engineering Manager
Hardware Design
Section 3, Department 4
IT Company
IT & Mobile Solutions Network Company
I want to see LCD television-
quality images on my PC
This PC is equipped with Sony’s exclusive
high-quality picture image circuit Motion
Reality. There’s also a fast response 20-
inch television-grade LCD screen
equipped with broad viewing angles.
Furthermore, the Clear Black LCD delivers
a vivid picture with excellent quality
contrast and brightness even when
displaying light colors or jet black.
I only want to see the
keyboard and mouse when
they’re needed
With a wireless keyboard and mouse,
VAIO type V eliminates the need for any
kind of wired connection. The keyboard
and mouse can be put away until
they’re needed again.
Can a PC double as both a
video deck and DVD recorder?
The hard disk drive (HDD) in the VAIO
type V can record up to approximately
103 hours of television programs. The
timer function, used to record programs,
can also be set via the Internet.
It would be great if I could do
everything with a remote
control
The stylish remote control is an integral
part of this PC. At the touch of a button
you can watch television, enter a timer
recording setting, change channels,
adjust the volume or perform various
other tasks.
http://www.sony.net/
File 04: PC “VAIO”
[VGC-V201]
High-quality picture image circuit Motion Reality
The VAIO type V’s AV entertainment menu

16
The new Cybershot:
Fun to carry around and take photos
Cybershot DSC-T1—The result of Sony’s desire to
create an entirely new digital still camera
Featuring a large, easy-to-see LCD monitor and
5.1 megapixel CCD in an ultra-compact, slim
body, the Cybershot DSC-T1 has been a best-
selling digital still camera in many countries since
its initial release in Japan in fall 2003.
About a year and a half ago, a group of young
engineers, determined to create a new digital still
camera unlike any before it, got together to
develop a next-generation model. The team
started from scratch, rethinking every aspect,
from product concept and design to components.
For example, CCD required a high, 5.1 megapixel
resolution, but also needed to be about half the
volume of a conventional CCD to achieve an
ultra-compact, slim size. A retractable zoom lens
would have made the camera too bulky. The
solution was a folded-optics lens system, co-
developed with Carl Zeiss, which moves within
the camera body instead of projecting in and out.
The result is a unique, ultra-compact, slim camera
with a 3x optical zoom. Further distinguishing
DSC-T1 is a 2.5 inch hybrid LCD monitor that uses
nearly half of the camera’s surface area. This large
display is one more reason this revolutionary
digital still camera continually amazes users.
A simple design with capabilities that people
appreciate more with use
Unlike a conventional camera, which has the lens
in the center and is held with two hands, the
innovative design of DSC-T1 was intended to
attract people’s attention. On the front is a sliding
cover made of aluminum alloy that protects the
lens. A specially coated stainless steel was used
for the camera’s body to prevent tarnishing and
preserve its beautiful appearance over the years.
The sliding lens cover also serves as the power
switch. Users can take out DSC-T1 from a shirt
pocket with one hand, open the lens cover,
switch the power on and snap a photo all in one
motion. DSC-T1 incorporates Sony’s latest ad-
vanced technologies, including a 5.1 megapixel
Super HAD CCD, Sony’s proprietary Real Imaging
Processor and a thin, high-capacity InfoLITHIUM
T-type battery. Incorporating these technologies
into such a compact space in DSC-T1 represented
yet another plunge into uncharted territory for the
project team. This achievement enables users to
immediately view and share photos with friends and
family on the large 2.5 inch LCD monitor, a capabil-
ity no conventional digital still camera can match.
Yasushi Noda
Product Manager
Group 2
Product Design 2 Department
DSC Division
Personal Imaging Company
IT & Mobile Solutions Network
Company
Koichi Tanigawa
Department No. 2
Imaging Technology Group
IT & Mobile Solutions Network
Company
I want a compact camera that’s
slender, yet durable
Miniaturizing CCD to create an ultra-
compact, high-resolution digital still camera
was a challenge. Stainless steel was chosen
for the body material of the 17.3mm thick
digital still camera because of its strength
and resilience. The aluminum alloy sliding
cover protects the lens and also serves as
the power switch.
I want to share my pictures with
friends and family immediately after
taking them
DSC-T1’s large 2.5 inch LCD monitor is
nearly three times the size of a 1.5
inch LCD monitor. The large
monitor makes it simpler to
compose photos and easier
to playback and share photos
with friends and family by using
the monitor as a display.
I don’t want to miss another great shot
Equipped with Sony’s proprietary Real Imaging
Processor, the camera powers up in about 1.3
seconds, takes approximately one second between
shots and has a shutter lag of about 0.24 seconds and
a release lag of about 0.009 seconds.
I want to enjoy taking photos using a
camera equipped with a Carl Zeiss lens
The newly designed folded-optics lens system was jointly
developed by Sony and Carl Zeiss. The system was
designed specifically to keep the lens within the camera
body and features a 3x optical zoom. Another unique
feature is the Magnifying Mode, which allows users to
shoot objects from as close as a centimeter away.
http://www.sony.net/
Atsushi Kawase
Senior Art Director
Design Center
This 5.1 megapixel CCD is approximately
half the size of a conventional CCD.
2.5 inch LCD monitor
File 05: Digital Still Camera “Cybershot”
[DSC-T1]
17.3mm
Newly designed folded-optics lens system

17
Capture it on DVD and watch it on a DVD player
The first-generation consumer DVD based video
camera, DVD Handycam, was a huge hit in the U.S.
In developing the next generation of models,
further miniaturization is the key
Sony’s video camera, DVD Handycam, was a
major hit in the U.S. market during the fiscal year
ended March 31, 2004. As the name suggests,
unlike other conventional video cameras, DVD
Handycam uses a DVD as its storage medium.
Material recorded on the DVD can be viewed
right away on a DVD player at home or can be
copied to another DVD for friends and family. Its
light weight, in particular, has made it very popu-
lar among many users, especially among families
who want to capture memories of their children
growing up or family vacations.
Sony’s next goal was to make an even smaller
DVD Handycam so that even more people could
enjoy this technology, and a project team was
established with this aim in mind. Smaller size
naturally requires both smaller components and
lower power consumption. While smaller compo-
nents reduce the overall size, the circuitry would
overheat if the same level of power were to be
used. Sony engineers solved this problem by
adopting the Intermittent Recording Method, a
technique that is not possible with a videotape.
Normally, when recording to a DVD, the data of
the moving image is simultaneously saved in the
memory and written onto the disc by laser, and it
is this part of the process that consumes the most
energy. Using the Intermittent Recording Method,
disc recording is twice as fast as normal speed,
meaning that recording takes half the time,
thereby lowering power consumption. This inno-
vative approach has facilitated a level of energy
efficiency that eliminates the risk of overheating
and has enabled this second-generation DVD
Handycam to be 30% smaller in size than the
first-generation model.
Taking advantage of features unique to DVDs
One of the biggest challenges in using a DVD
rather than a videotape for this video camera was
the problem of vibration. A shock or jolt can
interrupt the recording process on a DVD, in the
same way that a bump can cause the needle of a
record player to jump. To solve this problem, Sony
engineers applied their broad knowledge of drive
mechanisms, software and electronic circuit
technology to create a mechanism that is capable
of precisely offsetting the force of an external
shock. However, there are many other types of
vibrations and jolts that the video camera must be
able to cope with. During a testing phase that
was nicknamed the “Vibration Project” by those
involved, Sony conducted repeated and rigorous
testing on nearly 100 types of vibration and
impact right up until the start of mass production.
Engineers also focused on achieving an image
with the highest possible resolution by utilizing
Variable Bit Rate (VBR) Recording. With this tech-
nique, a fast-moving scene is recorded at a higher
bit rate, while a slower bit rate is used to record
scenes with less movement. Because bit rate
adjusts according to the volume of visual data,
the capacity of the DVD is more efficiently utilized
and picture quality is significantly enhanced.
Another advantage of this technique is that there
is less digital noise compared to Constant Bit Rate
(CBR) Recording, thereby making it possible to
record a wide range of subjects with the same
consistently high-quality picture.
For the next generation of DVD Handycam,
Sony engineers are working hard to pull a few
more exciting surprises out of the hat for video
camera users around the world.
Tadayuki Miyamoto
Project Leader
Design 2 Section 2 Group
Camcorder Business Section
Personal Video Company
IT & Mobile Solutions Network
Company
Yukiko Sakota
Planning Group
Personal Video Product Planning
Section
Personal Video Company
IT & Mobile Solutions Network
Company
There is no danger of mistakenly
recording over other material
DVD Handycam uses a DVD with a diameter of
8cm. It automatically records new material onto
unused disc space, so there is no need to fast
forward or rewind, or worry about mistakenly
recording over other material.
DVD editing is easy
By using a DVD-RW disc in Video Recording
(VR) mode, DVD Handycam functions as a
simplified editing tool. Users can easily erase
unwanted scenes, split and rearrange scenes,
and perform other basic editing functions.
It has never been easier to dub
content and send it to family
and friends
Material stored on DVD Handycam can
be dubbed for family and friends by
using either a DVD recorder with a hard
disk or a PC.
I want to be able to find any
scene I want quickly
With DVD Handycam’s Visual Index
function, the content on the disc can be
checked at a glance. To play a specific
scene, simply select it from the on-
screen display.
Masahiro Shigenobu
Project Manager
Media Technology 3 Group
Camcorder Business Section
Personal Video Company
IT & Mobile Solutions
Network Company
Rewritable DVD
Example of a Visual Index
File 06: Video Camera “DVD Handycam”
[DCR-DVD201]
http://www.sony.net/Products/handycam/

18
Cell: The next generation, multi-purpose microprocessor
To reinforce its competitive strength in its core electronics business, Sony is seeking to differ-
entiate its products by implementing a vertically integrated business model that incorporates
internally produced proprietary semiconductors, modules and components. Key components
include Cell, a next generation, multi-purpose microprocessor; imaging components, such as
CCDs and CMOS image sensors; display components, such as LCDs and organic electrolumi-
nescence (OEL) displays; Memory Stick; optical devices; and lithium-ion batteries. These
components are essential for producing highly competitive products.
The future of key components
Differentiating products by strategic
component
Over the years, Sony’s ability to develop such
proprietary key components as Trinitron and
CCD internally has been instrumental in creat-
ing numerous appealing products, and has
been the foundation of Sony’s evolution.
PlayStation 2 (PS2), for example, features the
EmotionEngine (EE), a 128-bit CPU incorporat-
ing highly advanced technology, and the
Graphics Synthesizer (GS), a high performance
image processor. Since its debut, PS2 has
revolutionized the game console market. As
the vital role played by EE and GS in the
success of PS2 showed, highly differentiated,
advanced semiconductors are essential in order
to open up new markets. Currently, Sony is
developing a new microprocessor, Cell, which
is ideally suited for the upcoming era when
the proliferation of broadband networks will
enable people everywhere to enjoy high-
resolution images.
The heart of next generation digital
consumer electronics
The concept behind Cell is to evolve the con-
ventional microprocessor, which is more of a
narrowband data processor that computes text
and still images mainly for PCs into a broad-
band data processor for game consoles and
high-definition televisions. Connecting several
multiple processors using a home network or
an IP broadband network will create a process-
ing capability that far exceeds that of a single
processor. The name Cell reflects Sony’s belief
that stand-alone microprocessors will be con-
nected through a broadband network and will
evolve to become a single global processor, in
the same way as organic cells combine to
create a living organism. Accordingly, network-
enabled devices, including consumer electron-
ics equipped with Cell, will become a structural
element of the broadband network itself.
Strategic alliance with IBM and Toshiba
expedites the development process
In March 2001, the Sony Group reached an
agreement with IBM Corporation and Toshiba
Corporation to collaborate in research and
development to create the architecture for a
new microprocessor, Cell, which it envisions as
the foundation of the next generation broad-
band network era. Combining their respective
strengths and technologies, the three compa-
nies expect to invest more than $400 million in
this project over five years. By incorporating
several of today’s most advanced semiconduc-
tor manufacturing technologies, such as cop-
per interconnects, a silicon-on-insulator (SOI)
process and low-K dielectric material, the
project aims to create a microprocessor that is,
in effect, a supercomputer on a chip.
Investment to facilitate production of
semiconductors for 65 nanometer process
technology—the most advanced in the world
Preparations are under way to fabricate Cell
and a variety of media processors in three
locations: Sony’s Nagasaki Fab; an IBM manu-
facturing facility in East Fishkill, New York; and
a Toshiba manufacturing facility in Oita, Japan.
In the fiscal year ended March 31, 2004, the
Sony Group recorded capital expenditure of
about ¥69.0 billion for the first stage of
construction of a mass-production facility for
semiconductors that use 65 nanometer (one
nanometer equals 1/1,000 of a micrometer)
process technology. Additional capital expendi-
ture of about ¥120.0 billion is planned for the
second stage of construction, beginning in the
fiscal year ending March 31, 2005. Trial opera-
tions at each of the three locations are sched-
uled to commence during the first half of
2005. Combined monthly production capacity
of the three facilities for 300mm wafers is
expected to be approximately 15,000 wafers.