Pitched as somewhere between Second Life and MySpace, it's a social space where PlayStation 3 owners can meet PlayStation 3 owners. They do this by navigating an avatar (similar to Nintendo's Mii, but more realistic and with more customization options) around a 3D world. Each user also gets a private space - a virtual apartment - which they can customize as they see fit. They can invite people into this private space and launch multiplayer games, or stream music and videos from their PlayStation 3 to the other people in this room. Sony's Home includes a virtual 'trophy room' where people can display their 'entitlements' (Sony's answer to Xbox 360's achievements) as moving, 3D trophies.
Oh, and it's all free.
This was Sony's ace in the hole. A completely unexpected, beautifully executed masterstroke that almost makes you forget about all of Sony's fuck-ups with PlayStation 3.
Right now, Sony is still talking about the possibilities of Home, and although a lot of these are still pretty blue-sky suggestions, they do give you some idea of what an online virtual world is capable of when you've got the weight and muscle of the entire Sony Corporation behind it. For example, using its ability to stream high-def movies, there could be movie premieres (in a virtual cinema) of Sony Pictures movies within Home. And for the MySpazz crowd, there's the possibility of in-game appearances by their favourite Sony BMG bands.
I bet the makers of Second Life won't get much sleep tonight.