COMPUTERS
February 26, 2008 4:27 PM PST

Sony leery of the Eee PC?

Posted by Erica Ogg
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LAS VEGAS--As a computer, the Eee PC from Asus is intended to be the opposite of intimidating--it's made for children after all. But its potential as a market force is apparently giving chills to its larger industry peers.

Here at Sony's annual Open House event, the senior vice president of Sony's IT product division said the tiny $299 notebook could potentially shift the entire notebook industry.

"If (the Eee PC from) Asus starts to do well, we are all in trouble. That's just a race to the bottom," said Mike Abary.

Eee PC

The Eee PC at its U.S. launch last fall.

(Credit: Erica Ogg/CNET News.com)

He means that if mainstream PC buyers start to find their needs met by a lightweight, simply featured, inexpensive portable, it's likely to impel all of the major players in the industry to pile on by lowering their prices. And that's in an industry with already low margins for retailers and manufacturers.

If the Eee PC just catches on with Linux developers, enthusiasts, and the tech-savvy early adopter crowd, that's fine by him. "But if mainstream buyers buy it, then, whoa," Abary said.

So should Sony, Hewlett-Packard, Dell, and their ilk be frightened of Asus? So far, the version of the Eee PC in the U.S. only comes with Linux, but that will soon change. Japan got its Windows XP version last month, and the U.S. should be getting one in the next few weeks. (See the full review of the Eee PC by CNET's Dan Ackerman.)

And even with just the open-source version available stateside, the numbers say it's striking a nerve: the company reported moving 350,000 units of the Eee in the first quarter it was available last fall.

Sony's not the only one taking notice. Acer is reportedly readying an Eee competitor, and the yet-to-be-officially-announced HP Compaq 2133 was developed with the Eee firmly in mind.

As for Sony, though it did start offering lower-priced notebooks last year in the $800 range, don't expect the company to go any lower just yet. Abary says so far the company is just "keeping an eye" on the Eee's activity.

Sony has always positioned itself as a premium brand, and will continue to do so, as was evident in the rest of its PC offerings on show here.

Vaio FZ

A Vaio to match your crocodile-print shoes.

(Credit: Erica Ogg/CNET News.com)

The company has been at the forefront of the uber-personalization trend that's taken over the notebook industry. By charging more, the company has more leeway with the options it can offer customers. It began doing colored laptops three years ago and is now branching out into personalized patterns, and--as suspected--textures.

People who buy their Vaio at the SonyStyle store online have as many as 36 different choices for personalizing their laptop. The Graphic Splash line has three different patterns and multiple color combinations, as well as a choice of font on the keyboard. "That's what consumers really, really want," Abary told a gathering of reporters earlier in the day.

Sony also said that Vaio as a brand sells particularly well with women, which could also explain Sony's increased emphasis on personalization. Though 80 percent of notebooks sold industrywide are owned by men, Abary estimated, Vaios' percentage ownership by men is in the low 70s, indicating a higher-than-average ownership rate by women.

But it's not all about appearances. Sony is also pushing its lineup of home theater PCs, which are not primary PCs, but still start at $1,699.

TP series

The TP series home theater PC is now a Blu-ray player too.

(Credit: Erica Ogg/CNET News.com)

Though Sony had earlier indicated that its TP home theater PC (that white round one), didn't sell particularly well last year, it still decided to bring it back for Round 2. It's still round, but now it's got some high-definition guts. Sony beefed it up with a Blu-ray Disc player, Intel Penryn processors, and two Cable Card tuners. It's also now available in black for $1,699 to $3,000.

Though it was released in the fall, the all-in-one PC from Sony, the LT, is part of the same strategy. Again, though it's a PC like Gateway's One or Dell's XPS One, Sony positions the product as a TV with PC capability instead of the other way around. Doing so is likely to lure more high-end customers, with the LT's Bravia-like bezel echoing Sony's line of LCD TVs.

Erica Ogg is a CNET News reporter who writes about consumer electronics and PCs, mostly as chief correspondent for Crave. She's also one of the hosts of CNET News' Daily Podcast. In her non-work life, she's a history geek, a loyal Dodgers fan, and a mac-and-cheese connoisseur. E-mail Erica.
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Add a Comment (Log in or register) 51 comments
Personally, I wouldn't buy a EEE PC
by Leria February 26, 2008 7:58 PM PST
If they were giving it away for only 2 dollars.... it just doesn't meet the expectations that I have for a PC, which one of the biggest one is gaming! I am an AVID PC gamer, and love to play PC games.... the EEE pc just will not play most of, if not all, of the game that I would like to play.

This is a gimmick computer for the stupid or the extreme elderly, who do not know what PC gaming or console gaming is.

That is the ONLY market that this computer will resonate with.
Reply to this comment
It's not for you
by GrantDeterman February 26, 2008 8:12 PM PST
First off this computer is not aimed at gamers, laptops in general are typically not aimed at gamers. This thing costs about the same as a decent graphics card does. I would argue that the vast majority of Americans do not play resource heavy games on their computer. There are many who simply use ms office, an internet browser and maybe something along the lines of solitaire. These types of consumers don't need gigs of ram and large harddrives it's just a different demographic. I applaud ASUS for selling a computer that meets the needs of those consumers, at a very low price.
View reply
Idiotic Statement
by Hoodgrown_Magazine February 27, 2008 5:31 AM PST
"This is a gimmick computer for the stupid or the extreme elderly, who do not know what PC gaming or console gaming is."

That's a really stupid statement! Not every person that buys a computer uses it for games.

I use my computer for graphic/web design and audio/video editing. I could care less about playing games on it.
View all 3 replies
Definitely not a gamer's PC
by bluemist9999 February 27, 2008 9:48 AM PST
But, honestly, I imagine a good gaming laptop (if there is such a thing) would cost around $3,000 for a high speed, portable laptop drive, lots of RAM and a high end mobile video card.

As for what most people (i.e. casual users) need? Well, most people just want to write documents, read email, surf the Web and so on.

I think the small solid-state hard drive will give the tiny PC "good enough" performance for the casual user.

Keep in mind: most people adjust to the performance of their PC, as long as the PC meets their needs. My mom, for example, didn't notice how long it took MS Office to open her Word documents. Nor did she care, really. She just had some coffee while waiting for the document to load.

But, definitely, gamers, developers, CAD developers, movie makers and other higher-end users won't have their needs met by an Asus Eee PC. It's like expecting a $10,000 car to perform like a $120,000 car.

I think it's a great thing to have so much variety in the PC marketplace, and definitely good to have a smaller, lower-end laptop for casual users. It broadens user choices.
That is completely retarded
by janstett February 27, 2008 10:35 AM PST
Go buy a lame boy, you ******. Just because you are an idiot gamer doesn't mean there aren't other uses for a PC -- like an ultraportable for web surfing around your house or taking with you on the road.
View reply
Gamers are only a small part of the PC market.
by Penguinisto February 27, 2008 4:57 PM PST
...and this is coming from a guy who used play them a lot.

OTOH, it would be one hell of a nice little machine to take on a trip, or into the server room.

/P
Photo Viewer, Travel PC
by Red Matthews February 28, 2008 4:58 AM PST
this thing has a bigger screen and is cheaper than many devices advertised as photo viewers.
I think there will be a big market for people who travel and really just want some outlet for their pics and the possibility of their own "network internet terminal" in a small form factor.
the elderly?
by megustansalchichas February 28, 2008 1:25 PM PST
yeah, like PCs are about gaming. the only excuse CNET has for having lame reporting that is only a step above ad copy is that juvenile readers like Leria love to express their emotions online to get the attention they're not getting in real life. i have news for you Leria -the market of people who don't play pc games and just need access to email is many many times bigger than your little world.
Actually its awsome for gamers
by krosavcheg February 29, 2008 11:25 AM PST
Its a great laptop for gamers because its super cheap, so instead of spending all your money on an expensive laptop, and then having to suffer crappy laptop gaming, you can buy a cheapo EEE as your portable, and then have a huge heap of cash left to buy a console or desktop for your gaming.

I spent £800 on a gaming laptop, and of course, it's gaming performance is pretty average. If I was buying today, I would have got an EEE for £200, and a £600 gaming desktop, which would kick ass at gaming.

Or actually, I might even have got an EEE, an Xbox 360 and a Wii, and still have £250 left over.
wow
by mariusthull March 2, 2008 4:53 PM PST
quote>
If they were giving it away for only 2 dollars.... it just doesn't meet the expectations that I have for a PC, which one of the biggest one is gaming! I am an AVID PC gamer, and love to play PC games.... the EEE pc just will not play most of, if not all, of the game that I would like to play.
<end quote>

Wow now there's a newsflash...the EEE pc won't play high end games. Of course it won't. It's not even targeted at that segment of the market. Unless I'm mistaken it's marketed as a first computer for children and teens. An ultra portable laptop and perhaps a back up pc. So the fact that it won't play WoW or cyrisis or whatever FPS you can think of isn't really surprising.

Other news flashes for those of you who are surprised the EEE Pc won't play games.

286,386, and 486 computers are not vista capable.

Photoshop is a better graphics program than MS Paint.

Access is more suited for working with databases than Word.

Mini-Coopers are not the best vehicle for the following:
Transporting a refrigerator, sofa, love seat, big screen tv, or other large furniture from one location to another.
Towing mobile homes.
Groups of people numbering more than 4 individuals. Less than 4 people if one or more is morbidly obese.

Landlords frown on adding the following to your apartment:
A second or third bathroom. A sun room, a second or third floor, a basement.

Diving boards should not be used with wading pools.

Dogs are much easier to play fetch with than Cats
Pros and cons
by Vegaman_Dan February 26, 2008 8:42 PM PST
It's a good small size that is very light and portable. With no moving parts and a small screen (PDA size in landscape mode), it doesn't use up a lot of power so it will run a long time on battery.

On the con side, that small screen size means a very low resolution- less than 800x600. Browsing the net on something that can't match most websides makes it difficult- you're always scrolling side to side or vertically constantly. The graphic chipset simply isn't up to the task of screen real estate management.

It has potential though. I wouldn't mind a throwaway unit like this to check mail and the web on the go. With the full keyboard, it makes it more useful than any smartphone on the market. I could see this being a real handy thing for digital photographers as a mobile image storage solution and larger screen to preview images on without having to take a full laptop with you.

It's also small enough to use on a plane- although without being able to use wireless on a plane, there isn't much else you can do with it.

Pros and cons. If the prices come down, I would be tempted to get the 8Gb version.
Reply to this comment
it fits fine
by pagesix1536 February 27, 2008 6:30 AM PST
I wouldn't worry about that 800x480 too much with browsing. IE7 and Firefox 3.0 each have the ability to zoom out, or scale down the screen proportionatly. Fonts get smaller, and images are scaled down, it all fits quite nicely on that small display.
View reply
Dunno...
by Penguinisto February 27, 2008 4:56 PM PST
It's obviously not for everyone, but damn it would be nice to tote one into a server room.

It would be perfectly useless for most of what I do with my personal machinery, but as an ultraportable? Not half bad.

On my own end of things, I'd prefer to use something like the MacBook Air - same low weight, but some beau coup serious horsepower behind it. OTOH, I wouldn't worry so much about the Eee getting stolen.

/P
Sony is caught off-guard in-between
by chew2train February 26, 2008 9:02 PM PST
First of all, the low cost computer for children initiative was kick-started by the OLPC effort (www.laptop.org), and quickly followed by Asus and other generic PC builders and microprocessor manufacturers.

Then you have the high-end laptop segment of the market that is being quickly overtaken by Apple.

Sony, who has been caught sleeping on the wheel, has become sandwiched in the middle as did most of the other PC makers. Is it surprising to find them in this precarious position. The resounding answer is NO. I haven't considered buying a computer from PC for as long as I can remember.
Reply to this comment
not solely for kids
by pagesix1536 February 27, 2008 6:31 AM PST
I disagree with those assessments on these subnotebooks being designed for kids. The OLPC is, but the Cloudbook/Eee is not really. It's a general use computer that most people shouldn't have trouble figuring out how to use.
In that case no notebook is good enough.
by chamm3r February 26, 2008 9:03 PM PST
All notebook PCs are horrible for playing games. This argument doesn't make much sense.

For simple tasks that most users do most of the time, the eeePC is good enough.
Reply to this comment
Not really
by Leria February 27, 2008 3:30 AM PST
I tested one of these EEEPC's when a friend had a tester, knowing that it wouldn't be able to do some things..... the performance just was horrible.

It was slow at watching videos, it was slow at surfing the internet, it was slow at running photo applications, etc. etc. etc.

It was slow at doing everything that my parents, who are not gamers (at least, not with cutting-edge games), would want it to do.

It's just, as I stated, as waste of money for the foolish who think this is really going to satisfy them, the extreme elderly who will not know what they are missing, and the extremely young who are too naive to notice what they are missing.
View reply
"Doesn't Need" is not equivalent to "Unpopular"
by magicmaster February 26, 2008 9:56 PM PST
EEE PC is tailored to minimalist or low-end user who just performs very basic tasks like e-mail, net surfing, or alike. Does that mean it's unpopular? No. Those are two very different concept.
Reply to this comment
Ah, but the minimalists......
by Leria February 27, 2008 3:35 AM PST
Are a very small percentage of the people out there, and even for MINIMALISTIC stuff, this computer is not up to snuff.
I tested one when a friend had a tester, and it wasn't meeting my expectations at all, even when my friend pointed out to me what you pointed out: that it is more minimalists.

It didn't do web surfing well, it didn't do the running of ACDSee (photo software that is pretty barebones) well, etc.

The only thing it did do well was e-mail, and that was just BARELY acceptable.

People are just going to have to pony up the money for a $2000 dollar PC, and let's be honest: a $2000 dollar notebook should last you, the way they are making them now as long as you get a discrete graphic card in it for a good 4-5 years.... by which time a computer 10 times better than yours will be $1,000 dollars at most.
View reply
poor sony and their overprice laptops
by bob1xxxx February 26, 2008 11:37 PM PST
LOL this story make me laugh out loud, really, for alot of people on the go, wanting light weight PC to send email, basic web brousing, editing word documents and day planing, the EEE pc makes a nice compromise, heck if I took a european vaction this would be my email machine and travel journal witten machine. Look EEE pc not for cruching large power point presentations or playing battle field 3 online, but asus never claimed that was the EEE pc goal or market. Sony's scared fecesless due to the fact their horriblely overprice , bloatware loaded, lap tops of less than stellar realiable, may be challange by asus EEE pc is absurd at best moronic at worst. All this statement does is give asus EEE pc free publicity. Instead of boo hooing about the EEE pc why doesnt sony come out with there only verison? maybe one with a 10" screen load with xp or linux dist, without there usual bloatware thats relable and faster? No sony would rather sit on there collective arses and whine like little girls, and work on their plans how to turn their new blue ray monoplay in to next Laser Disk flop. Sony is the swift becoming the studebaker of the consumer electronic world.
Reply to this comment
It's not for you stup...
by zextron February 27, 2008 1:00 AM PST
Please don't call stupid to people who only need email and basic office software. I have what you would call a server as my desktop. On the move I just need to check email and, eventually, RDP or logmein to my pc. Anything this small and under 1Kg is a bless. Ohm there?s the price too.
Reply to this comment
I'll second that
by pagesix1536 February 27, 2008 6:36 AM PST
I'm a certified systems engineer on Windows and VMware ESX. I'm far from a stupid user, but I own a Cloudbook, does that by default make me a stupid user?
Not my one and only...
by taming February 27, 2008 2:50 AM PST
My husband and I have both desktop computers in our home office and we each have a full sized laptop. I bought an eee pc because I can throw it in my oversized purse and do my daily paperwork on the go between clients. I used to have an hour of paperwork to do when I got home each evening. Now, by grabbing a few minutes here and a few minutes there with my eee pc I can put my feet up and relax in the evening.

The fact that I can so easily surf the net while I relax and watch tv in bed is a plus. I don't need a full sized laptop for that sort of thing.
Reply to this comment
hear hear...
by pagesix1536 February 27, 2008 6:38 AM PST
Glad to see someone has realized the point behind these. For most people it may not be a replacement for your normal system (actually for me it has, but I'm weird like that sometimes). If you want to still play games and have a powerhouse system, then buy one. But for $300-400 this things fantastic to bring along with you to wherever....Sit in a coffee shop and read news sites, or update your Facebook account, or even fire up a Skype video chat session.
Windows XP
by homerjsimpson75 February 27, 2008 6:02 AM PST
By adding Windows XP to the EEE PC you've removed what makes it
truly different. It won't be any easier to use, it won't be a different
user experience, it will just be Windows on a smaller screen. The
Linux (I admit I am not a Linux user) experience if new and
refreshing would be the driving point, not the tiny size. Computer
makers could learn from Nintendo...a low price point, simple to
use, and less glitz and glamour...makes a hot selling product (or
two.)
Reply to this comment
nah
by pagesix1536 February 27, 2008 6:34 AM PST
You can't really compare it to your normal computer. Of course it's going to be slower than your desktop/laptop you already use. 900 mhz (600 actual) is no where near the performance of a 3Ghz dual-core system or something similar. Not a fair comparison. Keep things in perspective, this isn't a performance-minded device, it's an everyday use device for basic internet activities, browsing, email, occasional Youtube fun, simple games, etc..etc.. They play video fine, you probably had a bad network connection. I play full-motion video from the Cloudbook and it's smooth
Reply to this comment
Sony Should Start Worring...
by bdaughtry February 27, 2008 6:42 AM PST
Sony should worry, because the Eee PC is a very good quality, inexpensive notebook computer. It has a solid state drive, weighs 2 lbs, and starts at $299.
Sony should be very concerned.

With respect to the person that says only "stupid & elderly" would buy it....that's hilarious. Only the "stupid" would NOT buy such a useful device. ;-)
Reply to this comment
WOW! This is incredibly narrow minded.
by dballagh February 27, 2008 7:13 AM PST
I suppose I wouldn't buy an eee PC for gaming either but it's ignorant to say that only stupid people or elderly would buy one. Honestly, Mac's don't play games well either so does that mean people who buy them are stupid? I have an eee PC and love it and I also own multiple laptops and desktops depending on what I'm doing. Actually I don't like desktops anymore and use only a laptop of my eee PC for everything. For gaming, I use my PSP, PS2, or Wii. I use these things like tools, if all you own is a hammer then everything/problem looks like a nail.
Reply to this comment
GOOD - FINALLY
by marc_90292 February 27, 2008 7:50 AM PST
Sony top brand? Right! Not those laptops I ever bought from Sony.
It is about time that somebody rattles the cage of those who kept prices on laptops artificially high.
Reply to this comment
LINUX
by hunter_jc February 27, 2008 8:05 AM PST
One word for SONY.
Sony deserves to be slapped. They keep on relying on Windows on the software front and their own softwares never work properly on Windows. There is no major renovation in their laptops for the past ten years. Their last real renovation is the subnotebooks. They ran windows. Now they still run the crap windows and do the same thing. As a consumer product, its boring. As a business product they are too expensive.
Apple is not scared of EEE PC and why should they? They keep renovating. They make exciting and attractive OS and other softwares. Windows work on them too. Why Sony cannot inovate like Apple do? They can make Linux for PS2 why not for their notebooks. Do bootcamp for their notebooks, let user choose what to use. Maybe even as crazy as have windows on a virtual machine inside linux. I wont want an ipod if sony has an attractive solution for everything. There are tons of developers for Unix/Linux. I think who made that EEE PC statement should be fired.
Reply to this comment
Yes, Sony does Linux.
by Penguinisto February 28, 2008 11:22 AM PST
[i]"Sony deserves to be slapped. They keep on relying on Windows on the software front and their own softwares never work properly on Windows."[/i]

Huh? You do know that Sony supports individuals installing Linux on their laptop line, and that they ported Linux to run on both the PS2 and PS3 (the PS3 itself runs it), right?

They also have distros tailor-built for their newer Vaio lines.

Here's their repository of Linux and other GPL-related binaries, as well as code:
http://www.sony.net/Products/Linux/Download/search.html

/P
View reply
Finally some competition
by pugster February 27, 2008 8:11 AM PST
Asus probably earns at least $100 per pc that they have sold. Hopefully companies like Sony and HP will drive the prices down.
Reply to this comment
Heres a tip
by wildchild_plasma_gyro February 27, 2008 8:19 AM PST
Quit worrying and invent.
Just because the Applause button suddenly became a bit of a concern dosent mean actually lett the departments free to expolore the world and find better opertunities won't help.
Japan is far to departmentalised its home grown philosophies to opressed and in this daya nd age with Chaina and other parts of Asia beginning to let there people breath some more perhaps you should follow suit.
Sony many be slightly nopolistic but it can change and in a healty way and let those Japaniese cosin breath and find solutions.

I think your problem is nut Asus's EEE its that Asus has let its dudes breath that bit more than you have you have been digging for gold so much so that now the world has began to stike it your not quite up on the act.
Reply to this comment
Heres a tip
by wildchild_plasma_gyro February 27, 2008 8:22 AM PST
Quit worrying and invent.
Just because the Appaluse button suddenly became a bit of a concern dosent mean actually letting the departments free to expolore the world and find better opertunities won't help.
Japan is far too departmentalized its homegrown philosophies too oppressed also and in this day and age with China and other parts of Asia beginning to let there people breath some more perhaps you should follow suit.
Sony may be slightly nepolistic but it can change and in a healty way letting those Japanese cozins breath and find solutions.

I think your problem is not Asus's EEE its that Asus has let its dudes breath that bit more than you have, you have been digging for gold so much so that now the world has began to stike it your not quite up on the act.
Reply to this comment
what the article is REALLY about
by sadchild February 27, 2008 12:36 PM PST
the title of this article should be "Sony said that in return for saying they are leery of the Eee PC, we would turn the rest of the article into a full page ad for Sony".

"Sony has always positioned itself as a premium brand, and will continue to do so, as was evident in the rest of its PC offerings on show here."

wait let me "oooh" and "aaah".

pictures of snakeskin vaios

ahem...... ga.. no, wait... GASP!! how was that?

well, i've got something for anyone thinking about buying anything by sony.....

ROOTKIT!

http://en.wikipedia.org/wiki/2005_Sony_BMG_CD_copy_protection_scandal

this will show you how "premium" sony products are. and how much they care about their customers too.
Reply to this comment
Asus Eee PC update
by backpackcomputing March 1, 2008 11:13 AM PST
I think this may be only the beginning of the race to the bottom. If you're interested I have a website which focuses on the sub-notebook/ UMPC market, including anticipated updates to the ASUS Eee PC. The site is:

http://backpackcomputing.googlepages.com/home
Reply to this comment
backpackcomputing.com
by backpackcomputing March 2, 2008 10:50 AM PST
The website that discusses UMPCs and other mobile form factor devices has changed its name to backpackcomputing.com
Sony Laptops
by law_hog March 2, 2008 8:26 AM PST
Overpriced, under spec. They are trying to be Apple (I am not an apple fanboy and the only thing I own that is made by them is an iPod).

They are just trying to separate the ignorant and vain folks from their money. Very sad.
Reply to this comment
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