Sony's big broadband bet

By CNN's Kristie Lu Stout

TOKYO, Japan (CNN) -- As it faces a bleak earnings outlook and a tumbling stock price, Sony is braving a broadband makeover .

Analysts say Sony intends to be the number-one player in the broadband era by linking its electronic devices to its broadband services and content offerings, with a financial backend to handle online transactions.

But profits may prove elusive as consumers slowly embrace a high-speed Internet.

Brave new broadband world

The electronics and media giant says it's no longer in the business of just churning out stand-alone products.

It's out to integrate all of its assets: consumer electronics, music, video games, motion pictures, even an online bank.

It's a brave new broadband world where Sony creates the content people consume, delivers it, and facilitates each transaction.

"Sony intends to serve the ordinary people with a high quality of life -- Sony first attracts people through the devices and through services," says Shigeru Ishii, the president of Sony's new online banking venture.

"I think the financial business may support all of these activities."

Interoperable gadgets

It starts with interoperability -- linking all its devices to form one massive distribution network.

"For example, it used to be TV sets were only to see TV programs and music devices were only to hear music," says Sony senior manager Takemi Sato.

"But if we connect those two worlds into one, we can have more fun out of those products."

Right now, Sony products share data with the memory stick, a reusable memory card. But the data swap doesn't stop there.

The company plans to put an Internet address into each and every product.

The Sony Clie is already networked to play videos and music. So is the Camcorder -- it's now built into the Vaio GT so budding filmmakers can shoot, edit and email digital films on the fly.

"It's made from the concept of connectivity and the moving picture -- and this concept has been upgraded. (The Vaio GT) is actually a PC, but it's more like a PC mounted on a camera," says Sony's business strategy officer Miki Yamashita.

Reaching the consumer

At the center of Sony's empire of networked products is a wireless tablet called the Airboard.

Available in Japan for around $1,000, it can access the Internet, play DVDs, and screen TV programs -- channeling Sony's wealth of content directly to the consumer.

"In the future, (the Airboard) will be a gateway to access other Sony products through this single wireless product," says Sony planning manager Ayumi Mizobuchi.

The company admits Airboard sales have been slow, due to a fledgling broadband market.

But Sony doesn't let an immature infrastructure get in the way of its broadband ambitions.

In Tokyo, the company is rolling up its sleeves to build a broadband access business with Tokyu Cable -- the final mile of its networked empire.