) latest handheld game machine sold
less than seven million units
during its first 12 months at retail. That is less than
of the 75 million PlayStation Portable units that Sony has sold
since 2005. In order for PS Vita's sales to catch up to PSP, Sony
would have to sell roughly 10 million units per year for the next
While that could happen, Sony's outlook is not very
encouraging. The company expects to sell no more than
1.3 million units
during the current quarter.
this week, Sony EVP and CFO Masaru Kato admitted that the
company's strategy is not working.
"Now one thing clear for us [is] that in terms of
profitability, we have to do a better job in promoting the
PlayStation Vita mobile product," he said.
"How do we do that? Well, gaming business software is the name
of the game. So as a fundamental measure, we are putting all -- a
lot of resources, not just first party, but also asking third
parties to put out more attractive software."
Finally, Kato teased the possibility of a price drop.
"The other thing, well, marketing, pricing of the product, et
cetera, I cannot talk about pricing of this platform, but those
are the things that we are looking into to improve our
profitability in the mobile handheld gaming business," he
Sony is trading down more than one percent today. The stock
took a beating last year, dropping roughly 40 percent, but has
gained more than 31 percent in 2013. This week, however, Sony
declined nearly five.
Part of the decline has been attributed to the firm's
bevy of losses
. The company reported its eighth consecutive quarterly loss,
diminishing investor hopes that Sony would announce its first
profit in two years.
Sony will hold an event on February 20 to announce the future
of the PlayStation business. It is widely speculated that the
company will unveil the first details about its next console
and/or the first details about its streaming game service. The
to acquire Gaikai last year, prompting many to speculate that
streaming games are in Sony's near-term plans.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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