Japanese investor says Sony is having a tough time with PS3 sales

A Japanese investment company in Tokyo puts Sony‘s predicament into words quite bluntly. “Sony is having a tough time with its PlayStation. Sony’s always had this image of being at the leading edge of technology, but they’ve fallen behind the Wii,” said Shigemi Nonaka, chairman of Polestar Investment Management Co. The company owns US$ 218 million in assets along with Sony shares.

Bloomberg has reported that the losses Sony’s game division suffered in the last quarter has increased, after going behind Nintendo Company Ltd.’s highly popular console, the Wii. However, Sony reported that its fiscal first-quarter profit doubled to 66.5 billion yen (roughly US$ 552 million),  while its stocks gained 1.1 percent. The profit was helped by exports of Cyber-shot cameras and television sets.

The news website also points out the competition between Sony, Nintendo, and Microsoft as the reason behind the PS3 US$ 100 price cut. Sony’s Kaz Hirai, however, had explained that the price cut served as a way of emptying the shelves of the 60GB PS3s, which will be replaced with 80GB units.

Non-U.S. residents who wish for a PS3 price cut may wait a little longer to get their wishes granted. Sony’s president, Ryoji Chubachi, said that they don’t have any plans for s;ashing PS3 prices in Asia or Europe. “The company doesn’t plan to cut prices at this point,” he said. “About the future, no comment.”

The race is still on between the Sony PS3 and the Nintendo Wii. Sony’s forecast sales for the PS3 is reported to be 11 million for this fiscal year, while Nintendo increased its Wii sales target by 18 percent to 16.5 million units sold by the year ending March 31.

A Japanese investment company in Tokyo puts Sony‘s predicament into words quite bluntly. “Sony is having a tough time with its PlayStation. Sony’s always had this image of being at the leading edge of technology, but they’ve fallen behind the Wii,” said Shigemi Nonaka, chairman of Polestar Investment Management Co. The company owns US$ 218 million in assets along with Sony shares.

Bloomberg has reported that the losses Sony’s game division suffered in the last quarter has increased, after going behind Nintendo Company Ltd.’s highly popular console, the Wii. However, Sony reported that its fiscal first-quarter profit doubled to 66.5 billion yen (roughly US$ 552 million),  while its stocks gained 1.1 percent. The profit was helped by exports of Cyber-shot cameras and television sets.

The news website also points out the competition between Sony, Nintendo, and Microsoft as the reason behind the PS3 US$ 100 price cut. Sony’s Kaz Hirai, however, had explained that the price cut served as a way of emptying the shelves of the 60GB PS3s, which will be replaced with 80GB units.

Non-U.S. residents who wish for a PS3 price cut may wait a little longer to get their wishes granted. Sony’s president, Ryoji Chubachi, said that they don’t have any plans for s;ashing PS3 prices in Asia or Europe. “The company doesn’t plan to cut prices at this point,” he said. “About the future, no comment.”

The race is still on between the Sony PS3 and the Nintendo Wii. Sony’s forecast sales for the PS3 is reported to be 11 million for this fiscal year, while Nintendo increased its Wii sales target by 18 percent to 16.5 million units sold by the year ending March 31.