PS3 May Either Make or Break Sony
It seems much lies on the hands of Sony’s PS3. Many are awaiting its release, with its much-publicized cost and quite costly price tag. The PS3 is key to the medium-term success of this company since so much has been invested in it, said Yoji Takeda who helps manage $600 million in Asian stocks at RBC Investment (Asia) Ltd. in Hong Kong. Success may be harder because of the pricing and the delays of the product so far.
Rival company Microsoft has taken an advantage of the PS3’s delay, to win market share for its Xbox 360.
The production of PS3 has caused the company much as well, with the features such as the Blu-ray high-definition DVD player and the Cell chip, which will make the PS3 run 35 times faster than the PS2. According to the stock market though, Sony has to hasten the PS3’s release, as shares in Sony had fallen 8.9 percent between March 15 and the earnings release because of the PlayStation 3 delay. Moreover, losses at the division for the full year will probably swell to 100 billion yen this fiscal year, and the total investment will take five years to recoup, Takao Yuhara, Sony’s head of investor relations told reporters on July 28.
To remedy the company’s losses, Sony’s Chief Executive Officer Howard Stringer has closed 9 factories, removed 9600 jobs as well as Sony’s restaurant chain and reduced costs by 76 billion yen.
And it seems that its up to the PS3 to make or break the company’s sales. Additional revenue sources from the PS3 will justify the spending, Yuhara said. Users can enjoy not only games but entertainment content in high definition on the console or on line. Hopefully the PS3’s sales will say the same too.
Via Bloomberg
It seems much lies on the hands of Sony’s PS3. Many are awaiting its release, with its much-publicized cost and quite costly price tag. The PS3 is key to the medium-term success of this company since so much has been invested in it, said Yoji Takeda who helps manage $600 million in Asian stocks at RBC Investment (Asia) Ltd. in Hong Kong. Success may be harder because of the pricing and the delays of the product so far.
Rival company Microsoft has taken an advantage of the PS3’s delay, to win market share for its Xbox 360.
The production of PS3 has caused the company much as well, with the features such as the Blu-ray high-definition DVD player and the Cell chip, which will make the PS3 run 35 times faster than the PS2. According to the stock market though, Sony has to hasten the PS3’s release, as shares in Sony had fallen 8.9 percent between March 15 and the earnings release because of the PlayStation 3 delay. Moreover, losses at the division for the full year will probably swell to 100 billion yen this fiscal year, and the total investment will take five years to recoup, Takao Yuhara, Sony’s head of investor relations told reporters on July 28.
To remedy the company’s losses, Sony’s Chief Executive Officer Howard Stringer has closed 9 factories, removed 9600 jobs as well as Sony’s restaurant chain and reduced costs by 76 billion yen.
And it seems that its up to the PS3 to make or break the company’s sales. Additional revenue sources from the PS3 will justify the spending, Yuhara said. Users can enjoy not only games but entertainment content in high definition on the console or on line. Hopefully the PS3’s sales will say the same too.
Via Bloomberg
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