From November 28-30, STEF 2018 (Sony Technology Exchange Fair) was held at Sony headquarters. STEF is an in-house event where Sony Group's engineers and colleagues gather from across the globe to share in-development technologies, exchange ideas, and connect with each other.

■ Efforts to Expand the Scope of our R&D

This year, under the leadership of Toru Katsumoto (EVP, Officer in charge of R&D) and Teruo Hirayama (Executive Chief Engineer), STEF took on the theme of Sony's corporate direction, "Getting closer to people." Where past exhibits have mainly focused on applications for our electronics business, this year's event saw a concerted effort to showcase applications for our Entertainment and Financial Services business as well.

As I highlighted at the latest Quarterly Meeting, all of Sony's businesses rely on a strong foundation of technology. I've asked Katsumoto-san to maintain a focus on certain technology areas, while widening the scope of R&D applications to the entire Sony Group, to accelerate our technological synergy. As such, I had much expectation for this year's STEF. And, thanks to the efforts of everyone involved, this year, we saw a marked increase in STEF visitors from our Financial Services and Entertainment businesses.

■ Collaboration between R&D Center and Financial Services

The first STEF exhibit I want to introduce is that of a joint effort between Sony Bank and Sony's R&D Center, on a proof of concept for digital vault based on the next generation privacy preserving technology. They proposed a potential new service offering from Sony Bank enabled by R&D Center's technology. Sony's Financial Services business, especially Sony Life Insurance, has a rich trove of data. Furthermore, Sony Bank and Sony Assurance are pioneers of Japan's digital financial service companies. I was thrilled to see this type of new service proposal and collaboration, and I was reminded once again that there are still more opportunities like this to be realized. I would like for all of us to pursue and promote Group-wide synergy, utilizing our data and technology beyond the scope of individual businesses.

■ Reaffirming the depth and breadth of "Reality"

At this year's STEF I also had a personal discovery about the profound depth and breadth of "Reality". I've often used the phrase "from 'Reality' to 'Real-Time'" to explain how, in addition to the pursuit of "Reality" through our high-quality audio/visual technology, the importance to provide the value of "Real-Time" is on the rise. But as I visited the different exhibits and listened to everyone's passionate explanations, it struck me that the concept of "Reality" is not only applicable to audio and visual fidelity, but also extends to the dimension of "space." I realized that the pursuit of "Reality" is much deeper and broader than I previously thought.

■ Examples of Spatial "Reality"

Interactive Virtual Space with High Degree of "Reality"

For example, Tadayasu Hakamatani from R&D Division of Sony Interactive Entertainment (SIE) uses real space data (image, light source and shape) to generate interactive virtual space with a high degree of "Reality." Previous technology recreated reality in CG and allowed users the flexibility to view only static, fixed objects in space from various viewpoints. By contrast, Hakamatani-san's technology allows users to actively change the colors, shapes, and positions of the objects in the space, and its simulated light allow for real-time rendering of photorealistic images from any given perspective. This technology brings virtual spaces closer to "Reality" than ever before.

Observing the virtual space from the hand-held virtual camera

Technology to Reconstruct 3D Space from Images, and Estimate Movement

Masaki Fukuchi (Vision System Technology Development Dept, R&D Center) showed me the latest in 3D reconstruction and movement estimation technology. In this demo, his team uses synchronized images from stereo cameras to simultaneously reconstruct the environment three-dimensionally and estimate how the camera has travelled in space. With this technology we can, for example, virtually reconstruct an area captured by drone-mounted cameras in three-dimensions and get a more realistic view of the drone's route. This technology proposes new application for Sony's image sensors.

Combining Sound and Space to Deliver Highly "Realistic" Sonic Experience

In the domain of bringing sound and space together, there was the demo by Koyuru Okimoto (Audio Technology Development Dept., R&D Center), showcasing new audio solution for theaters. Seated in a movie theater, you are invited to wear a pair of open-ear earphones, and after calibration, the combination of sound from the theater loudspeakers and earphones provides a surround sound environment tailored for each listener, regardless of theater size. In one demo you could hear someone coughing as if they were right behind you, and it was nothing less of "Reality." I recently had the chance to watch "Bohemian Rhapsody," a biographical film about the life of Freddie Mercury, vocal of the popular rock band Queen, and I felt this technology could elevate the appeal of such films filled with musical masterpiece. Incidentally, the music publisher for Queen's catalog is EMI Music Publishing, which recently became a wholly owned subsidiary of Sony.

Integrating Virtual and Real Spaces to Propose New Entertainment

Lastly, there was also proposal for new entertainment by integrating virtual space with the real, physical space. The demo by Osamu Ota (R&D Division, SIE) invited visitors to wear a VR headset and walk the virtual world wirelessly, and handle tangible objects with low latency within that virtual space. This could allow, for example, two people facing each other to share the experience of being in the same virtual park, and play catch together using an actual ball. I felt the potential of a new entertainment that blurs the line between the real and the virtual world.

These examples of technology that revolve around the notion of space show that the pursuit of "Reality" is incredibly profound and intriguing. Therefore, I would like to learn more about it and continue exploring its possibilities.

■ Sony's Purpose to Deliver Kando Through the Power of Creativity and Technology

Sony is rich with such "seeds" of technology as I experienced at this year's STEF. We are a company that has always delivered new kando through the creativity of talented individuals and our technological strengths. I believe this is where Sony's purpose, our very reason to exist, lies. Sony's co-founder Masaru Ibuka once wrote in the Founding Prospectus, "The first and primary motive for setting up this company was to create a stable work environment where engineers who had a deep and profound appreciation for technology could realize their societal mission and work to their heart's content." The executive management team will continue to dedicate ourselves in creating an environment where everyone can fully exercise their creativity and technological strengths, and I would like to ask all of you all to make the most of such opportunities.

This will be this year's final blog post. I thank you all sincerely for your contributions throughout the year. To make 2019 an even better year, I would like to continue our collaboration even further, and endeavor to create new value for our customers.