Sony has a Lot to Gain or Lose with its PS3

Most people think of the PS3 as just another video game console heading for a three-way rumble with the Xbox 360 and the upcoming Nintendo Wii. But the success (or failure) of PS3 is worth a lot more to Sony.

Sure the PS3 could make Sony the leader in the video game industry that’s worth $25 billion, but if the PS3 does click with gamers, the console’s Blu-ray optical disc technology could also give the company an upper hand over its rival HD-DVD.

The commercial triumph of the PS3 could also boost the sales of its new Cell microchip processor which Sony hopes to be the chip of choice for future digital electronic devices and appliances.

“We will supply microchips and other key devices in large quantity for PlayStation 3. So, the impact will be felt in Sony’s all core businesses,” Sony told reporters last week. “Our movie division is also holding high hopes on Blu-ray. PS3’s success is a concern for the Sony group as a whole.” Sony certainly isn’t leaving anything to chance. It poured massive amounts of money (to the tune of $425 million) into the PS3 and expects to sell 6 million PS3 units by March 2007.  And there’s no turning back now as, according to an investment expert, Sony has crossed the point of no return.

Most people think of the PS3 as just another video game console heading for a three-way rumble with the Xbox 360 and the upcoming Nintendo Wii. But the success (or failure) of PS3 is worth a lot more to Sony.

Sure the PS3 could make Sony the leader in the video game industry that’s worth $25 billion, but if the PS3 does click with gamers, the console’s Blu-ray optical disc technology could also give the company an upper hand over its rival HD-DVD.

The commercial triumph of the PS3 could also boost the sales of its new Cell microchip processor which Sony hopes to be the chip of choice for future digital electronic devices and appliances.

“We will supply microchips and other key devices in large quantity for PlayStation 3. So, the impact will be felt in Sony’s all core businesses,” Sony told reporters last week. “Our movie division is also holding high hopes on Blu-ray. PS3’s success is a concern for the Sony group as a whole.” Sony certainly isn’t leaving anything to chance. It poured massive amounts of money (to the tune of $425 million) into the PS3 and expects to sell 6 million PS3 units by March 2007.  And there’s no turning back now as, according to an investment expert, Sony has crossed the point of no return.