AOL expanding to PlayStation 2, Toyota?

The AOL-Toyota talks are aimed initially at linking AOL's online service in Japan with Toyota's Internet-commerce site, called Gazoo.com. The two companies are considering joint marketing programs and jointly developing e-commerce services, they said.

Meanwhile, AOL's talks with Sony Computer Entertainment are aimed at enabling users of Sony's PlayStation 2 game console to access AOL's online service. The two companies are considering ways of bundling AOL software with the PlayStation 2. That might include selling PlayStation 2 consoles preinstalled with AOL software or simply shipping AOL software on a CD-ROM with each console.

The people characterized both sets of talks as preliminary and said they don't expect them to be completed until next year. Both sets of negotiations were started earlier this year and have included top executives from each of the companies.

Spokesmen at Toyota and Sony Computer declined to comment. AOL (aol) executives who were contacted also declined to comment.

The negotiations are rooted in AOL's strategy of pushing its software into an array of different devices, including cars, game machines and mobile phones. Dubbed "AOL Anywhere," the strategy got a boost in September when AOL announced it would sell a controlling stake in its Japan operation to NTT DoCoMo Inc., Japan's dominant cellular service provider. Through the connection with DoCoMo, AOL expects to develop new online services that can be accessed from both cellular phones and PCs.

A tie-up with Sony would give AOL a link to the world's most-popular game machine. The PlayStation 2, which was launched in the U.S. in October, is equipped to connect to the Internet and is central to Sony's long-term mission to expand into broadband Internet services, including online games. Sony expects to ship 10 million PlayStation 2 consoles world-wide by the end of March, in spite of recent delays caused by parts shortages.

One issue that could block an AOL-Sony deal is the belief held by some Sony executives that as Sony expands its online presence, it will someday compete with AOL. Sony runs one of Japan's largest Internet service providers and is considering how to expand the service overseas.

A deal with Toyota, meanwhile, could give a boost to Gazoo.com, the auto maker's two-year-old Japanese-language Web site, which offers online shopping and information about Toyota cars. The brainchild of Toyota executive Akio Toyoda, whose family founded the company more than 60 years ago, Gazoo is Toyota's first big foray online. In addition to referring car shoppers to Toyota dealers, Gazoo sells CDs, books and vacation packages.

People familiar with the AOL-Toyota talks didn't disclose details of the negotiations, but said the two sides are discussing ways to work together that would increase traffic and e-commerce at both companies' Web sites. AOL and Toyota already have investigated the technical issues involved in linking their sites.

The existence of AOL-Toyota talks suggests that General Motors Corp. (gm) and Toyota, the No. 1 Japanese auto maker, may go their separate ways in e-commerce initiatives. GM announced last February that it was in discussions with Toyota to use Gazoo to market GM vehicles and services in Japan. Toyota executives said at the time that Gazoo might solicit GM's help in launching Gazoo in the U.S.

If Toyota reaches an agreement with AOL, it is likely to expand Gazoo to the U.S. through AOL, a strategy that would give Toyota instant access to millions of AOL members. Meanwhile, in Japan, GM hasn't been able to seal its negotiations with Toyota to offer GM products through Gazoo, despite months of discussions. "We've waited for almost a year, and we can't wait much longer," said Mark Hogan, president of e-GM, GM's e-commerce business unit.

Todd Zaun contributed to this article. TOKYO -- America Online Inc. is in separate negotiations with Toyota Motor Corp. and Sony Corp.'s video-games unit that, if fruitful, would help the U.S. Internet giant expand into online services tailored to automobiles and video-game consoles, according to people familiar with the talks.

The AOL-Toyota talks are aimed initially at linking AOL's online service in Japan with Toyota's Internet-commerce site, called Gazoo.com. The two companies are considering joint marketing programs and jointly developing e-commerce services, they said.

Meanwhile, AOL's talks with Sony Computer Entertainment are aimed at enabling users of Sony's PlayStation 2 game console to access AOL's online service. The two companies are considering ways of bundling AOL software with the PlayStation 2. That might include selling PlayStation 2 consoles preinstalled with AOL software or simply shipping AOL software on a CD-ROM with each console.

The people characterized both sets of talks as preliminary and said they don't expect them to be completed until next year. Both sets of negotiations were started earlier this year and have included top executives from each of the companies.

Spokesmen at Toyota and Sony Computer declined to comment. AOL (aol) executives who were contacted also declined to comment.

The negotiations are rooted in AOL's strategy of pushing its software into an array of different devices, including cars, game machines and mobile phones. Dubbed "AOL Anywhere," the strategy got a boost in September when AOL announced it would sell a controlling stake in its Japan operation to NTT DoCoMo Inc., Japan's dominant cellular service provider. Through the connection with DoCoMo, AOL expects to develop new online services that can be accessed from both cellular phones and PCs.

A tie-up with Sony would give AOL a link to the world's most-popular game machine. The PlayStation 2, which was launched in the U.S. in October, is equipped to connect to the Internet and is central to Sony's long-term mission to expand into broadband Internet services, including online games. Sony expects to ship 10 million PlayStation 2 consoles world-wide by the end of March, in spite of recent delays caused by parts shortages.

One issue that could block an AOL-Sony deal is the belief held by some Sony executives that as Sony expands its online presence, it will someday compete with AOL. Sony runs one of Japan's largest Internet service providers and is considering how to expand the service overseas.

A deal with Toyota, meanwhile, could give a boost to Gazoo.com, the auto maker's two-year-old Japanese-language Web site, which offers online shopping and information about Toyota cars. The brainchild of Toyota executive Akio Toyoda, whose family founded the company more than 60 years ago, Gazoo is Toyota's first big foray online. In addition to referring car shoppers to Toyota dealers, Gazoo sells CDs, books and vacation packages.

People familiar with the AOL-Toyota talks didn't disclose details of the negotiations, but said the two sides are discussing ways to work together that would increase traffic and e-commerce at both companies' Web sites. AOL and Toyota already have investigated the technical issues involved in linking their sites.

The existence of AOL-Toyota talks suggests that General Motors Corp. (gm) and Toyota, the No. 1 Japanese auto maker, may go their separate ways in e-commerce initiatives. GM announced last February that it was in discussions with Toyota to use Gazoo to market GM vehicles and services in Japan. Toyota executives said at the time that Gazoo might solicit GM's help in launching Gazoo in the U.S.

If Toyota reaches an agreement with AOL, it is likely to expand Gazoo to the U.S. through AOL, a strategy that would give Toyota instant access to millions of AOL members. Meanwhile, in Japan, GM hasn't been able to seal its negotiations with Toyota to offer GM products through Gazoo, despite months of discussions. "We've waited for almost a year, and we can't wait much longer," said Mark Hogan, president of e-GM, GM's e-commerce business unit.

Todd Zaun contributed to this article.