 I'm here with Phil Molyneux, president and CEO of Sony Electronics. You're here in New York just to show off all your newest stuff you've got on the electronic side of Sony. Yeah, that's right. We asked you good guys to come in and come and see our latest and greatest. But we also took it a little step further, coming out of CES, Consumer Electronics Show. We announced our 4K TVs and a few other products, great products, and we're going to be showing a few other products, great products. But today we wanted to show you a side-by-side comparison against our competitors' product so that you could judge which was the best experience or best audio or best picture. So pretty brave move and I think it shows the confidence we have in the product line. Yeah, so what I got out of this was that you're here, you're showing off your products against your competitors' products. And in some cases, it's very traditional. You have a TV, they have a TV, you think your TV is better. I think everybody understands that story from Sony. But with your headphones, you're entering kind of a market that you haven't been in before. So they have fashionable stylish headphones and now you have fashionable stylish headphones. Are you trying to say that your products stack up next to theirs directly? We've always been in the headphone market. We've always had a major share in the headphone market. The key difference is, and really what I wanted to explain today, we are the go-to headphone manufacturer for the professional end of the industry. We've been in there many years. And if you go to recording studios today, you'll see them wearing Sony headphones because it's a trusted representation of what happens in terms of the recording studio and the monitoring of the audio output and the mixing. So those professional producers and mixers use Sony headphones, but a long way. And it's not only in recording studios, it's also if you go to TV stations or radio stations, they've got Sony headphones on in the majority of cases. So you're trying to bring that experience to the consumer? I think it's important that it's understood from a professional end of the market that we are the go-to headphone because of the quality of the audio, the true representation of the audio output. And then using our knowledge and our experience and technology, put that into our consumer orientated headphones so that you or other people can hear the music as it was meant to be heard and how the artists want you to hear it. So the other thing that struck me about today was apart from the tablet, the Xperia Z tablet, which is very interesting and very beautiful, what you've shut off is very traditional consumer electronics from the electronics side of Sony. But the company has talked a lot about the One Sony initiative, the need to bridge across the company, and the two hottest segments that Sony has are the mobile and the PlayStation 4. It's not that they're not here. It makes sense they're not here. They're different divisions of the company. But your integration up through the company into those products was not really evident. Is there a reason that you're so tightly focused on just the consumer electronics portion here? No. So then it's great insight. So thank you for that. The reality is we are extremely well connected. And I'll give you a concrete example. We showed today our 84-inch TV. It's stunning. And it's 4K ultra high definition. So it's a completely different experience. But we launched that product into market last November. And as part of that launch, we worked with Sony Pictures, our movie company. And we remastered several of their blockbuster, in fact, 10 of their blockbuster titles, Amazing Spider-Man and Salt and Lawrence of Arabia, into native level 4K content. And we packaged that together on the server, together with the 84-inch TV with a tablet, so that there was a world's first experience for consumers to have native 4K movies in their home. So from a Sony Pictures point of view, that's their assets. From electronics, it's a TV electronics. We put it together and we deliver to the consumer. If we're more concretely talking about the Sony mobile side, then the Xperia Z will be part of our go-to-market approach. We're talking about near-field communication and one touch. We have some great audio product out there in terms of our speakers and our audio board that always gets a giggle. So the Xperia Z will be one of those products that we show, demonstrating that one touch philosophy. So if I had to push you on the tablet, on the Z, that is the...here you showed cameras, televisions, headphones, which Sony has sold for forever. And then there's a tablet, which is a very new product category, which is potentially an explosive product category, which is very different than the traditional other products. And I would say your focus was on the traditional products and less so on this kind of weird hybrid that blends the elements of a television that has obviously the technology from the mobile side of the business. How do you see Sony transitioning and having focus on both the mobile stuff, the weird new products, and the traditional products? So today we showed the Xperia Z tablet, right? And we're demonstrating that in conjunction with the TV and how it's your second screen and the unique application we have there, TV side view. Let me ask you, do you think the tablet is more... You can play with the content that you can see visually on your tablet. Do you think the tablet is more of a mobile device, a television device, or a computing device? So our opinion is we have the Xperia Z handset, and that is truly mobile, right? So it's kind of for the consumer now, the center of the world and your social story, et cetera. And when you're out and about, that's your go-to device. I believe that when you have your tablet, that is partly mobile, but predominantly in home device and used as a second screen. Because our Xperia Z mobile phone device is a five-inch screen, but the Xperia Z tablet is a 10-inch screen. So obviously, if you're at home and you can lean back and interact with your TV and also have a social agenda, social media agenda, it's a better experience on a 10-inch. So you have to look at what is outside world, in home world, and then what is the best product offering to facilitate your need. Will you have an LTE version of the tablet? Will you do a maybe 3G, 4G HSPA tablet outside of the US? I think that's a natural progression, isn't it? But if the tablet's mostly an in-home device, do you need it? Are you seeing consumers ask for it? I said mostly, but of course then people on the road in business will have a need for an LTE device and to use it for productivity purposes. So really depending on the consumer. But we're focused on satisfying the consumer and of course understanding their habits and bringing the solutions they need. So let me talk to you about the tablet as a second screen I think is very interesting. That is actually an explosive use of the tablet, right? It's growing very fast. And now you've got these new televisions. Is there any direct integration between the tablet and the TV? So at this stage not. We have some ideas that I'll talk to you later on. Sounds great. But we're using our tablet. It has an infrared. It's probably the only one on the market now where you can control not only your TV but your home audio equipment and whatever you have at home. But we also put unique Sony developed applications like TV side view which is giving a much better user interface to control and understand the content that's on your TV box and also share with your friends and social media and I'm watching this and what do you think or dive in and understand who the actors are and what other movies or programs they've been in. So it's richer experience we're bringing there. So let's talk about the TV. It's obviously a 4K. You're talking a lot about upscaling, a lot of X reality, all the stuff you're doing to make 2K content look better. But at CES, my favorite product at CES was a Sony product that doesn't exist. It was a circle with a light in it and it said prototype 4K player. Is that any more real? Have you put chips inside the box yet? So we were teasing you at CES. I know it was just a circle with a light. We have to put context on this. With our 84 inch 4K ultra high definition TV, we ship it today with a server and preloaded content. And that's just like a PC tower. It's a PC tower. It's got some tricks in there to make sure the consumer experience is great, wonderful. But in addition to that, now we're working on a home server that will allow in the summer a download service for 4K content. As well as we have Sony Entertainment Video Unlimited, so you'll be able to get access to HD content as well. And that server is maybe a little bit fictitious at this moment. But the player, it was my favorite thing at CES. I'm not even kidding. I took four people by it just to see it. And I said this box with the light is the best thing at CES. So I mean Sony is brilliant at design, cosmetic design and industrial design. We do it beautifully. We've got wonderful engineers. So you look at the TV, 55 and 65 and the magnetic fluid speakers that point at you rather than at the wall and give you that dynamic sound output. And you see that server. You don't want to hide it in the cupboard, right? You want to put it on the wall. It's beautiful. But it's functional as well. Well, you know, that's funny. And I know you can't talk too much about the PS4. But that's the natural. There are two things that I want to ask you about. One is they didn't show us the PS4, the PS4 launch event, because they said we don't want you to think about the box. We want to think about the controller. And second, you're building a download service for 4K. Is it going to work on the PS4? Have you thought about it working on the PS4? It's a little bit like we showed the server mockup, as you said, at CES. And you thought it was beautiful. But you couldn't get any details. And then we're showing it again. We're giving you a little bit more as we go along. So similarly for the PS4, we'll give you more details in due course. But I promise you, you will not be disappointed. And in terms of other 4K distribution, downloads might take a long time, right? The files will be big. Are you anticipating that they'll take overnight? Are you thinking they'll take a few hours? Will they start instantly? The size of a typical movie, depending on the length of movie, you're talking 100 gigabytes and plus, right? So then you come into variables about how fast is your broadband at home? Or do you have optical broadband like they do in Houston? Then you can get the movie down there pretty quickly. So that is one of the challenges that we have to work through. And for our summer launch of our service, we've got some very good ideas that will make that a comfortable consumer experience. And then looking to the future, we need to develop as an industry new compression ratios and technologies. That dialogue is in active progress at the moment. You talked a little bit about Blu-ray and the progress you're making. Are you anticipating a physical distribution for 4K as well? I'm not discounting it. But you think it will be download primarily? So I think the whole world is moving more and more to download. Consumers are used to download, right? And streaming. I don't want to discount the good work that's going into potential physical media distribution. But that's an industry association and they're working hard. But for the summer, we will bring this download service first to market, world's first, and compelling content and a wider catalog of content for consumers to enjoy with Sony 4K ultra high definition TVs. All right. Well, thank you so much, Phil. It's always a pleasure talking to you. Thanks. Thanks for having me.