Business Week Predicts Good Times For Sony News
Chris Leyton
13/10/2004
Business Week expects the PSP to retail for no more than $200 and expects good times ahead for Sony Corp…
Business Week has recently posted bold predictions for Sony Corp despite a general consensus amongst the rest of the business world that says otherwise.
After the infamous âSony Shockâ where shareâs in the Japanese electronic giant dropped by 23%, trading has jumped by 46% compared to the lows of April 2003.
Many financial analysts predict this to be a short rise, however citing the massive on-going restructuring plans currently being employed by Sony Corp, Business Week predicts that the outcome will be cost reductions of close to $2 billion by March 2005.
The article suggests that the release of the slimline PS2 will buoy sales of the PS2 to Sonyâs forecast of 14 million units within the fiscal year.
However itâs the claims about the PSP which prove to be the most interesting, with a suggestion that Sonyâs predictions of 3 million units within Japan in the current fiscal year are âconservativeâ, and that a total closer to 4 million would be nearer to the mark.
The article goes on to state that a North American release is expected between âJanuary and March 2005â, and expects the PSP to retail for no more than $200, which certainly comes as welcoming news after the $330 price-tag was leaked during the recent Playstation Business Meeting.
The article does however end with the warning that if the rumours regarding a missed Christmas release in Japan were too become true, then Sony would loose substantial revenue potential and market share to the Nintendo DS.