Sony Builds PS3 Online Community

Sony's(SNE) PlayStation 3 video game console just got a lot more interesting.

Sony has built an online virtual world, much like Second Life, where PS3 users can create their own avatar, watch movies, build and furnish their own personal spaces or "apartments" inside the online community and interact with other users through video or text chat.

The service, called Home, will be available as a free download and can be directly launched from the console.

"We are building a rich 3D social networking service for PS3 users from around the world," says Phil Harrison, president of worldwide studios for Sony Computer Entertainment.

Sony said it plans to do beta tests in April and launch the service in fall.

The virtual world of Home could also bring more users to the PS3 and help Sony catch up with rival Microsoft(MSFT), which has the lead among networked consoles.

"It's a very nice user interface and will appeal to PS3 users who want to be part of an online community," says Colin Sebastian, an analyst with Lazard Capital, which doesn't own stocks or have an investment banking relationship with Sony. "This has been a long time coming, and we are now getting some visibility into their online strategy." he says.

Sony also said it plans to release LittleBigPlanet, a new community-based game in which users build objects, explore obstacles and solve puzzles. LittleBigPlanet will be a title exclusive to the PS3.