Sony Computer Entertainment Europe announced the latest version of its PS3 system software to allow access by PSPs to the PS3 hard drive from remote locations over a wifi internet connection. PS3 owners can now access any music, video or photo collections stored on their PS3 using their PSP. The remote access service will be provided on a trial basis and free of charge until April 2008. Sony says "The date and method to switch to a pay service and the price will be announced as soon as a decision is made". Placeshifting has been made famous by Sling Media, which recently agreed to be acquired by Echostar. Sling allows users of PCs (and now some mobile phones) to watch the TV service they have at home, wherever they have an internet connection. There are a number of similar PC-based applications, but Sling has made the running in easy-to-use, reliable and user-friendly systems. Today's announcement from Sony is further evidence of the PS3's potential as a powerful digital home media server. I would however be concerned if Sony felt it might generate significant pay revenues from this type of service as it suggests. Another reason for Sling's success is that it is based on a contract-free hardware-only revenue model. Sony will be watching carefully during the trial period for evidence that remote access increases owner satisfaction and stimulates sales improvement for both the PS3 and PSP from offering this type of capability, but it should not be wary of jeopardising any success by expecting its customers to cough up monthly fees.