Sony is facing real problems now. Before it was merely a suspicion, but with the hardware defiances that have lead to a reduced number of PS3s to be released in America, plus a delay of the European PS3 launch all together, has raised even more questions about the PS3 then there was before. First we had the 600 dollar price tag. Next there was the elimination of the rumble pack from the controller which, while sad, we could learn to live with. Doubt was cast onto the as yet uncertified Blu-Ray system, and it is that system that has finally caused Sony to get tripped up.
As a result of this trouble Ken Kutaragi, the President of Sony Computer Entertainment, openly admitted to the Reuters news agency that Sony's influence is on the wane. This admission came after another hard pill that Sony had to swallow, when it was forced to recall millions of it's laptop batteries when users discovered that they were overheating and, it some causes, actually catching on fire. This adding to the problems with the PS3 launch makes it a very grim time for Sony.
Kutaragi made a straightforward, if somewhat heavily worded, admission that Sony's hardware arm is lacking serious punch. His words have sent investors and analysts scrambling, as it may mean that there are serious problems with Sony's hardware division. This may lead to a drop it profits and/or stock for the company. How Sony will recover from these heavy handed blows is not, if at all, certain.
It would only be mere speculation as to the impact this will have on Sony's economic future but for more information stay tuned. To see the original Reuters article please go [a]http://today.reuters.com/news/articlenews.aspx?type=reutersEdge&storyID=2006-09-08T124607Z_01_T73859_RTRUKOC_0_US-SONY.xml&from=business[aa]here[/a].
Nick McCavitt at email@example.com