Sony needs to make Playstation 3 a success
August 1st, 2006 Leave a comment Visited 41 times, 3 so far today
Sony needs to make Playstation 3 a success
Consumer electronics maker Sony has just posted their third consecutive quarter of better-than-expected earnings and with the launch of Sony Playstation 3 coming up in the next couple of months, they need to outperform the market expectations more than ever.
Sony Corp. Chief Executive Officer Howard Stringer has a big task at end. He has to make sure that the Sony Playstation 3 and the Blu-Ray format does not end up becoming a disaster for the company.
They already are suffering from losses from their gaming division and have already predicted that the cost of developing the PS3 platform along with the Cell processor would indeed widen losses at the division this quarter and may take five years to recoup.
Microsoft has benefited from the delay in the launch of the Sony Playstation 3 gaming console as they have been selling their Xbox 360 with no competition in the market since November last year.
The company is also hoping that PS3 loaded with the Blu-Ray drive will spur sales from its movie library.
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August 3rd, 2006 at 01:28 pm
Sony made a big mistake and has over streched their capabilities and available funding. They will be hard pressed to get PS3 to work reliably with Blu-ray giving read errors when the drive gets warm.
It will take IBM another 18 months before they can commission a new fabrication process to get the die size on the Cell processor from 90nm to 65nm where they think they can get the heat down and the yields up to more acceptable levels.
By the time this happens, Sony will be too far behind to catch up and that is why Microsoft will do the unthinkable and announce a new generation XBOX in 2010 giving Sony no time to recoup the 2 Billion in costs it has borrowed on. It will be game set & match.
Nintendo will probably do OK with the Wii.
August 9th, 2006 at 08:20 am
Sony will win this generation too youl see dumb fanboy