Sony PS3 Key To Long Term Growth

Posted by Admin on Friday, December 08, 2006 - 04:53 am:

Share | Create New | Reply | Edit

One Of The Biggest Challenges Facing Sony Is The Delayed Launch Of Playstation 3

Research and Markets has announced the addition of Spotlight on Television 2.0 Leaders: Sony Corp. to their offering.

This exclusive analysis delivers a strategic run-down on Sony's TV 2.0 activities, which include:

• PlayStation - Sony's PlayStation 2 (PS2), PlayStation Portable and upcoming -- but twice delayed -- PlayStation 3 (PS3) serve as platforms for the delivery of not only video gaming, but also movies, music and other multimedia content.
• Sony Pictures Acquisition of Grouper - Sony's $65 million purchase of online video sharing site Grouper could pave the path toward an integrated web presence that not only generates revenue from the sale of online advertising, but also provides Sony with the means to promote the complementary and mutually reinforcing nature of its electronics and entertainment businesses.
• Sony Music's Creation of MusicBox Video - MusicBox Video, the online music video site for Sony’s record labels, provides a central location for users to access music videos and spread them virally around the web, promoting Sony artists in the process.
• LocationFree TV – Sony's effort to ride the coming wave of place-shifting, LocationFreeTV is moving from the realm of corporate and high-end users to the mass market.
• And many more initiatives...

Despite its current and past successes, Sony is grappling with stagnant revenues and technological challenges. One of the biggest challenges facing Sony is the delayed launch of PlayStation 3. This next generation console could provide a much-needed revenue boost for the number one game platform provider. More importantly, our analysis shows that PlayStation 3s importance to Sony extends far beyond short term revenue gains.

Sony's clearest prospects for growth lie in the PSP, PS2 and PS3 convergent media devices because, unlike most other media and entertainment companies, Sony has a competitive advantage by also being a manufacturer of media receiving gear. Not only does Sony control major motion picture, television and music businesses, it also supplies the devices through which a large number of consumers can access that entertainment content.

This analysis shows that these convergent media devices could reach the majority of American homes by the end of the decade. Combined, the PSP, PS2 and PS3 could have cumulative shipments of 86.94 million units to the U.S. by the end of 2010.