AOL (AOL) was up 0.4% in early trading. The giant Internet service provider announced it was teaming with Sony (SNE) - Get Report to bundle its popular services into Sony's Playstation 2 video-game console.

The combination is partly a Sony defense against

Microsoft's

(MSFT) - Get Report

Xbox, due to be released in October, which will have broadband capability.

The AOL/Sony package should be released by the end of the year. Sony was up 2%, while Microsoft was down 0.3%.