Canadian media got an early look at Sony's recently redesigned LocationFree TV system Tuesday in downtown Toronto.

The device acts as a cable extender, broadcasting television over a wireless network within the home and sending a wired NetAV signal over the Internet that can be picked up by Windows-based PCs or PlayStation Portable consoles at wireless hotspots anywhere in the world.

The new LocationFree TV package, which includes a base station and a software CD, runs about $500 Cdn or $350 USD. That's roughly $1,300 less than Sony's initial place-shift TV offering released in 2004, which came bundled with a portable LCD TV.

"Our original LocationFree TV package was a little expensive for the mass market," explained Patrick Lapointe, a marketing manager with Sony of Canada Ltd. "We're listening to our customers' concerns."

The base station draws from a variety of video sources outside of TV signals, including DVD players, baby video monitors, personal video recorders, and security cameras, providing the potential for Sony's portable TV platform to be used for some out of the ordinary applications.

At home, the base station's 100-foot wireless broadcast range provides users the ability to watch a movie while lounging in their backyard, keep an eye on the front door security camera, and monitor sleeping babies.

Away from the home, office workers can watch television on their PCs during breaks (or any time the boss isn't looking, technically), travelers can tune into the big game while sitting in airports, and homesick vacationers can watch hometown news in their hotel rooms.

But the technology isn't perfect. Mr. Lapointe noted that the LocationFree base station can't stream a high definition signal, and widescreen images are automatically converted to a 3:4 aspect ratio. Also, digital rights management issues prevent Sony from allowing the base station to broadcast the same television signal to multiple devices, though it can stream different source signals simultaneously.

Plus, Sony is facing competing technologies, notably Slim Devices' Slingbox, which can stream TV from home entertainment systems to any Windows PC with an Internet connection, as well as a growing number of ad-hoc setups.

Matt Levitan, marketing manager for Sony Computer Entertainment Canada Ltd., made an appearance at the LocationFree TV launch, suggesting that Sony believes the PlayStation Portable will be a strong competitive advantage. With millions of installed users and the simplicity with which the PSP can connect with a LocationFree base station, Sony seems to be banking on the multi-purpose handheld to turn the tide of the place-shift television battle in its favor.