Outline of Topics

1. CELL Processor Based WorkstationsSuper Computing "CELL" Converges Action Movies into Gaming Worlds

2. Outline of Topics • Crisis in Processor Design • CPBW: Building a General Purpose Computing System from New Microprocessor Architectures • IBM Digital Media Solutions for the Game Industry • CPBW in the Game Development Process

3. Transistor performance scaling near limits • Channel off-current & gate-oxide tunneling challenges supply voltage scaling • Material and structure changes required to stay on Moore’s Law path • Power per (switched) transistor decreases only slowly SiGe and Strained Si 11 10 Low-K Dielectrics 10 10 Non-Scaling 10GHz 7 Level Cu + SOI 9 10 Cu 8 10 1GHz 7 10 100MHz 6 10 Scaling 5 10 1MHz 10MHz 4 10 • Consequence: • Microprocessor performance limited by processor efficiency • i.e., we know how to design processors we cannot reasonably cool or power 3 10 • Moore’s Law: 2x transistor density every 18-24 months 2010 1980 1990 2000 • Gelsinger’s Law: 1.4x more performance for 2x more transistors Leff Crisis in Microprocessor Design # Transistors per Chip • Hofstee’s Corollary: 1/1.4x efficiency in every generation

4. Memory Cache Cache CPU >, < SuperScalar Memory Cache *, / *, / *, / *, / *, / *, / *, / +,- +,- +,- • Hyper (deep) pipelining “Where Have All the Transistors Gone …? “Mechanisms to Hide Latency and Pipeline Depth that Add Performance ……and Inefficiency • Virtual Memory/Caches • Speculative and Out-of-Order Processing • Superscalar Micro-architectures

5. + + < < Instruction Broadcast Unit: +, -, *, / <, >, Data Registers CPU Registers Memory Local Memory Techniques for Realizing New Processor Architectures Paths Toward Increased Efficiency • Chip Level Multiprocessors • Reduced superscalar, pipeline depths, speculation • Vector/SIMD processing for compute-intensive streaming or data parallel workloads • Instead of superscalar pipelines + • Different Memory Organization: • Registers (compiler managed) • Local Memory (software/programmer managed) • Shared Main Memory (software/programmer managed)

6. DPP DPP CPP … DPP Best of Both Worlds? A Hybrid Approach for Microprocessor Architecture • Traditional processor (s) for Control Plane Processing (CPP) • Run OS / Manage resources • Limited per-thread performance / improved efficiency • Quick path to enable legacy software with good performance on control codes • Compute-optimized Data Parallel Processors (DPPs) • “Offload Acceleration” - run compute intensive portions of applications • 3-level memory model

7. CPBW: Building a General Purpose Computing System from New Microprocessor Architectures

8. Building Systems from New Microprocessor Architectures Sony, SCE and IBM’s Collaboration • CELL Processor Based Workstation – next generation content development platform • Scalable, supercomputer-like performance • Common Software Development Environment for digital animation & game industries • First CELL Processor based system ! Announced at E3 Expo, May 11, 2004

9. CELL Processor Board CELL Processor Based Workstation Software Dense, Rack Mount Chassis Common Development Environment High BW Networks Sys Mgmt Storage + CELL Processor CELL-Aware Common OS Real-time OS I/O Bridge CELL Processor (2-Way SMP) Memory • Dense rack-mount blade form factor • Integrated high bandwidth network switches • Integrated power and cooling and system management • Vast Floating Point Capabilities • Massive Data Bandwidths • Parallel Processing Architecture • Game Development Tools and Middleware • Centralized system management • Dual CELL Processors (SMP) • I/O Bridge, System Management Support Logic, Memory, Storage • Multiple High Bandwidth Network Interfaces Developing a CELL-Based Content Creation System • Foundation for the IBM-Sony/SCE Integrated Digital Content Creation Environment

10. IBM Digital Media Solutions for the Game Industry

11. Digital Media is unstructured content - video, audio, and images - that cannot be stored in traditional databases. The market for digital delivery of visual content through a network inall industries will grow at 49% CAGR from 2002-2006 to reach almost $2 billion by 2006. Narrowcasting Market Poised for Rapid Growth by CAP Ventures 2002 Consumers are 5-10 x more likely to noticedynamic media vs. static media Consumers are 2-5 x more likely to recalldynamic media vs. static media Consumers are 5 times more likely to "click-through" a rich media ad. Rich media ads generate higher rates of post-impression sales. Post-impression sales activity is 45% higher. DoubleClick White Paper, July 2003 “The popularity of digital signage over conventional printed signs has grown considerably in recent years. Some analysts predict that by 2005, digital signage will grab as much as $1.5 billion of advertising spending in the United States.” DCD Business Report

12. Digital media can have intrinsic value… Games Books Music Art Advertisements Movies …and it can also have business process value Marketing & Product Information Medical Image Distribution Dynamic In-Store Advertising Security & Surveillance Automated Consulting Video and Audio Conferencing

13. The amount of information created in the last two years exceeds the amount created throughout history ! 93% of all information is created digitally. 200324B Total Market Opportunity in 2004 is $27.5B 200212B 30,000 BCE Cave paintings 3500 BCE Text 20016B 105 Paper 20003B Electricity, telephone 1870 Transistors1947 Computing1950 Late 1960s Internet (DARPA) 1993 www 1999 Source: University of California at Berkley Source: School of Information Management and Systems at the University of California at Berkeley, 2001

14. Games market is seeing significant growth Worldwide Online MP and MMP Games Revenue $31.4 B CAGR = 49% (2000 – 2008) Source: "Research and Business Intelligence Source CITL, Inc. (www.citlinc.com)", 2004"

15. Continued Growth Is Projected For Foreseeable Future Combined IT Spend CAGR =35% (2000 – 2008) • Notes: • From bottom-up analysis • Includes SP, MP and MMP costs. Source: "Research and Business Intelligence Source CITL, Inc. (www.citlinc.com)", 2004"

16. IBM Digital Media Solutions Targeted to Industries Digital Content Management Video Communications Digital Security and Surveillance Dynamic Digital Merchandising Banking Digital Content Management for Gov (RAMMP) Digital Security and Surveillance Digital Media Distribution Gov Dynamic Digital Merchandising Digital Security and Surveillance Digital Media Distribution Retail Digital Content Creation / Online Games Broadcast & Publishing Asset Mgt Digital Media Center (Storage) Media & Entertainment Marketing Asset Management Wireless Content Distribution WiFi Digital Media Gateway Digital Media Distribution Online Games Telco

17. Game Industry Pain Points • Slow speed to market for launch of new games due to inflexible technology environment • Costly integration and customization due to fragmented infrastructure • Inability to quickly modify environment to accommodate new games or user groups • Inability to handle demand spikes due to lack of scalability • Lack of integration with back office systems • Security and piracy concerns

18. Digital Media LifecycleDriving Value From Inception to Consumption Distribute & Transact Distribute / Transact Create Manage Create Manage Set-Top Box Modeling Game Engine AI & Physics Simulation Target Console Scene Graph Animation Retail Managing the workflow, processing production, storage and retrieval of digital media, as well as the cataloging, indexing and annotation of original content LAN Rendering Display Securely delivering digital content for consumption or commerce across multiple devices and delivery channels Planning, creating, producing and encoding information and unstructured assets such as video, audio, animation and images. Conversion Ingest & Indexing Compilation PC - Print Interactive Engine Streaming Media Media Server Digital Rights System Video Wireless Edge Content Content Infrastructure Device Cache Management Aggregation Services Text System Business Wireless RightsSystem E- sourcing Gateway Distribution Image WAN Scheduling Storage Multi- Kiosk repository Audio Publishing Search Production Transaction Managed Middleware System Media Server Business Gateway Hosting Other Return Data Network Delivery Devices Application Integration Middleware Business Support Systems, Operational Support Systems Warehousing Protection Infrastructure Rich Media Creation

19. IBM Solutions for the Digital Media Industry Partner Tools and Applications (e.g. AT&T, Qwest, FP Digital, Mastech) Partner Tools and Applications (e.g. Ancept/Stellant, Telestream, Context Media) Set-Top Box Modeling AI & Physics Simulation Game Engine Target Console DB2 Content Manager Scene Graph Animation Retail LAN Rendering Display DB2 Content Manager Conversion General Parallel File System (GPFS) WebSphere Portal Ingest & Eclipse & Rational Tools Indexing Compilation PC - Print Interactive Engine Streaming WebSphere Edge Server Media Media Server WebSphere Total Storage Solutions ARMS Linux Digital Rights System Video Wireless WebSphere Commerce Edge Content Information Integrator for Content Tivoli Privacy Manager Content Infrastructure Device Cache Management WDME Aggregation Blade Center Services Text System Business Wireless VideoCharger e-Business hosting eXtensible Content Protection (xCP) RightsSystem E- sourcing Gateway Distribution Image Blade Center IntelliStation WAN Scheduling Storage Multi- Kiosk repository Blade Center Audio Blade Center Blade Center Publishing Search Production Transaction Managed Middleware System Media Server Business Gateway Hosting Other Return Data Network Application Integration Middleware Business Support Systems, Operational Support Systems Rich Media Creation Create Manage Distribute & Transact Partner Tools and Applications (e.g. Cisco, Pathfire, Entone, Kasenna, RealNetworks Partner Tools & Applications (e.g. Alias, Discreet, SoftImage) Warehousing Protection Infrastructure Delivery Devices

20. Providing scalable hardware infrastructure Note: Cell-based systems are not part of these current IBM Digital Media Solutions

21. Open software for availability, community and commerce Division of NCSoft Note: Cell-based systems are not part of these current IBM Digital Media Solutions

22. And a multitude of services offerings Note: Cell-based systems are not part of these current IBM Digital Media Solutions

23. CPBW in Game Content Creation Distribute & Transact Manage Set-Top CPBW Box Modeling AI & Physics Simulation Game Engine AI & Physics Simulation Target Console Scene Graph Animation Animation Retail LAN Rendering Rendering Display Conversion Conversion Ingest & Indexing Compilation Compilation PC - Print Interactive Engine Streaming Media Media Server Digital Rights System Video Wireless Edge Content Content Infrastructure Device Cache Management Aggregation Services System Business Wireless RightsSystem E- sourcing Gateway Distribution Image WAN Scheduling Storage Multi- Kiosk repository Audio Publishing Search Production Transaction Managed Middleware System Media Server Business Gateway Hosting Other Return Data Network Delivery Devices Application Integration Middleware Business Support Systems, Operational Support Systems Protection Infrastructure Rich Media Creation CPBW Complements and Enhances the IBM Digital Media Solution Suite Create Text Warehousing

24. CPBW in Game Content Management and On-Line Delivery Set-Top CPBW Box Modeling AI & Physics Simulation AI & Physics Simulation Game Engine Target Console Scene Graph Animation Animation Retail LAN Rendering Rendering Display Conversion Conversion Ingest & Ingest & Indexing Indexing Compilation Compilation CPBW CPBW PC - Print Interactive Engine Engine Streaming Streaming Media Media Server Media Server Digital Rights Digital Rights System System Video Wireless Edge Content Content Infrastructure Device Cache Management Aggregation Services System Business Wireless RightsSystem E- sourcing Gateway Distribution Image WAN Scheduling Storage Multi- Multi- Kiosk repository repository Audio Publishing Search Search Production Transaction Managed Middleware Middleware System Media Media Server Business Gateway Gateway Hosting Other Return Data Network Application Integration Middleware Business Support Systems, Operational Support Systems Rich Media Creation CPBW Complements and Enhances the IBM Digital Media Solution Suite Create Manage Distribute & Transact Text Warehousing Protection Infrastructure Delivery Devices

25. Summary • Crisis in Processor Design is Stimulating New Microprocessor Architectures: • Increased (consumer) processor performance will require more efficient architectures and micro-architectures • Increasing efficiency requires increased programming effort • Multi-threaded vs. single thread • SIMD/Vector vs. scalar • Increased memory hierarchy and explicit management • Control vs. compute • CPBW: • First CELL Processor based system • Scalable, supercomputer-like performance • Next Generation content development platform • Complements, and enhances the wide range of existing IBM Digital Media solution offerings for games

26. Presentation Contributors CPBW Systems Robert Hanson Ashwini Nanda Gottfried Goldrian Toshiyuki Sanuki Randy Moulic STI Design Center Jim Kahle Peter Hofstee IBM Digital Media Chalapathy Neti Patty Fry Gregory Carson, CITL, Inc (www.citlinc.com)

27. Key Segments in the Online Games Value Chain Content/IP Development Publishing Game Hosting Audience Aggregation Internet Access Backbone Game Device Single Player Access Provisioning Service Providers (e.g., NTT, Orange) Value-Added Network Service Providers (e.g., Paypal, Visa) Console Makers (e.g., Sony, Nintendo) General Purpose Device Makers (e.g., Dell, Nokia) Small Shop Developers Game Portals Content Owners, Studios & Leagues ISPs Major Game Publishers Large Shop Developers Multi-Player Internet Cafes Massively Multi-Player MMP Focused Developers & Publishers Conglomerates Source: "Research and Business Intelligence Source CITL, Inc. (www.citlinc.com)", 2004

28. Infrastructure Zone IBM Point of View: Six Zones for Games Infrastructure Lobby Zone: The entry point into the game provider’s site Community Zone: Gamer-accessible services and information outside the game itself Game Zone: Servers and infrastructure to support the game Infrastructure Zone: Middleware and Systems for the complete infrastructure Back-Office Zone: Business-related systems Development Zone: Systems and tools to develop and test the game Lobby Zone Security Security Community Zone Game Zone Security Security Security Back-Office Zone Development Zone

29. Three Key IBM Digital Media Value Propositions for Games Marketplace Community Community Infrastructure: On-Demand Operating Environment for Games Development: Deep Computing for Games Game Game Lobby Lobby Content Management & Secure Distribution Back Office/ Business Integration