4:53 PM: We finally get started with a heart-warming speech from Kaz Hirai. We are told that PS3 will launch in November. PS2 became a global format, and the install base continues to grow, recently hitting 100 million units sold.

4:57 PM: More than 3 million registered users on PS2 network. PS2 will continue to make contributions to the gaming world, and Sony will continue to support PS2 on hardware and software for years to come. There will be 216 new PS2 titles in 2006.

4:58 PM: Moving on to PSP. PSP is the culmination of the best that Sony has to offer, including UMD (huh?!). PSP is the fastest-selling platform in Sony history. Sold over 17 million units. There are 545 PSP games on the market to date (not sure where they are…). Showing a mix of upcoming PSP games.

5:03 PM: Greatest Hits program starting for PSP, including ATV Off Road, Ape Escape, Hot Shots Golf, Wipeout Pure, and one other game we missed. A game must sell 250,000 or more units to become a Greatest Hit. RSS Video will be in a future firmware upgrade for PSP. There will be an RSS feed of the press conference made available for PSPs for conference attendees.

5:05 PM: They are showing a video package that shows why people can’t wait for the PS3 to launch.

5:09 PM: Sony’s mission is to create products that inspire. Time to move on to PS3. PS3 is powered by Cell, which Sony has invested billions of dollars in. The console uses Blu-Ray, but is also compatible with a large amount of optical media. PS3 has a Gigabit ethernet port, and a removable hard drive. They are still saying PS3 will output 1080p, but no mention of two high-def ports at the same time.

5:11 PM: PS3 will support PS3, PS2, and PS1 games. There will be a PSP connection as well. Data can be shared wirelessly, through USB, or through Memory Stick. Today 95% of PS2 games are on DVD, while 5% remain on CD-ROM. Blu-Ray will give developers a bigger canvas to create on.

5:13 PM: PS3 will see a worldwide launch in early November.

5:15 PM: Today, Sony is showcasing playable PS3 game titles that will also be available on the show floor.

5:17 PM: Gran Turismo creator hits the stage to talk about the PS3 we are assuming. They are showing off a Gran Turismo prototype. Don’t get it twisted, though, this is playable. Calling it Gran Turismo HD, moving at 60 frames per second in full 1080p.

5:20 PM: Menu’s are also designed for HD displays. Players can choose from a large range of vehicles - racing, commercials, and even scooters. Looking at the game, we must say that it is beautiful.

5:22 PM: This is 3 times more data being displayed than a typical high definition television show. Loading time is optimized to hard drive, should take 2-3 seconds versus 15 seconds from Gran Turismo 4. They are now comparing previous versions of Gran Turismo, showing the evolutionary scaling of the franchise.

5:29 PM: I am totally liking the cars. Environments can use some work. Hell, this is E3 - no excuses here. They hope to release the next Gran Turismo near the launch date of the PS3.

5:32 PM: Richard Marx hits the stage - he is the creator of Eye Toy. He is demoing Eye Of Judgement, a 3D card battle game that you can interact with by using the camera. Nice to see the interaction, but nothing too special. Thankfully, it was short.

5:35 PM: Kaz is back to talk about their network strategy. Basically, online and networking on the PS3 is a standard feature. There will be MySpace integration, friends lists, voice messaging, text messaging, etc. All of this will be made available free of charge. There will also be some sort of marketplace for games, music, movies, and others. This includes content for the PS3 and PSP.

5:38 PM: Showing the download service for the PSP. Kaz downloaded an original PlayStation game to the PSP. After little suspense, Ridge Racer hits the screen on the PSP. Looks nice, but dated. The game is playing in a 4:3 format, as it should, but it isn’t as nice. You can change the screen size, but that results in stretching.

5:41 PM: The PlayStation Card will be made available for micro-transactions. Xbox Live points, anyone?

5:42 PM: There are a few music videos that can be downloaded into games like Sing Star. There will be a camera that allows you to upload your videos.

5:46 PM: Using the power of the PS3, there is an opportunity for an extreme large amount of characters on the screen at once, like in ‘Tales of Genji.’

5:50 PM: Moving to a racing game, you can use the PSP as your rear view mirror. Very nice.

5:52 PM: Heavenly Sword creator hits the stage. This one looks like a Gladiator-type game. Excellent AI and animation here. Will be playable on the show floor. I am not sure about the graphics leap between the PS3 and Xbox 360. I guess HD is HD.

6:01 PM: Finally - two new titles being premiered. First one is ‘Eight Days,’ where thugs are shooting it out in the desert somewhere. I like the look, but it was a trailer without much, if any, gameplay footage.

6:04 PM: Second game is called Naughty Dog. Some sort of adventure game. Kind of lackluster.

6:10 PM: Resistance: Fall of Man. A first-person shooter that looks quite nice. Takes place in the WWII timeframe.

6:12 PM: A look at Ridge Racer 7. Thing is, it looks like everything else is just going to be trailers with no actual gameplay. We see Brothers In Arms, Sonic The Hedgehog, and a few others. Still waiting for something…big.

6:19 PM: EA is working on Procedural Awareness and footwork. This gives players full 360-degree movement. NBA Live 2007 playing on PlayStation 3. This looks very nice.

6:22 PM: Virtual Tiger Woods demo. This looks nice visually, but is just a corny segment. No one is going to be talking to virtual Tiger on their PS3.

6:25 PM: A medley of teasers shown for EA Sports games, along with a few others. Again, trailers are unimpressive at this point.

6:27 PM: Final Fantasy XIII shown off, followed by Hideo Kojima’s Metal Gear Solid 4.

6:33 PM: Ken Kutaragi hits the stage. He says he has one big secret, and begins talking about the unique PlayStation controller. Looks like we are going to get a look at the PS3 controller. It looks similar to the current dual-shock, but it has something on the inside. The controller has six degrees of freedom with no external sensor required. The controller is BlueTooth, and lighter than the current dual shock controller.

6:38 PM: War Hawk demo using the new controller. Flying shooter, and it looked impressive. Not the same as Wii’s controller, as there is no spatial recognition and no accelerometer.

6:43 PM: PS3 launch: November 17, 2006. $499 for a 20 GB unit, $599 for 60 GB. Same date in Europe. Japan will launch on November 11, 2006. There will be 4 million units shipped by December 31, 2006, 2 million of which during the launch window.

6:46 PM: And, we’re out!