Sony’s shares slide on PlayStation 3 and battery troubles

“Amid rampant speculation over Sony’s ability to deliver ample supplies of its upcoming game console, analysts and investors sent shares of the Japanese giant slipping Thursday in response to lower ratings from a securities firm,” Red Herring reports.

Red Herring reports, “Sony shares ended the day down ¥150 ($1.29), or 2.85 percent, to ¥5,100 ($43.80) on the Tokyo Stock Exchange. Meanwhile, shares of United States subsidiary Sony Corp. were down $1.20, or 2.7 percent, to $43.22 in recent trading.”

“Mitsubishi halved its PS3 sales forecast, predicting Sony will sell 3 million consoles between the system’s November launch and March 31. The revised prediction is attributed to anticipated difficulties producing enough of the system’s pricey components,” Red Herring reports. “Sony says it plans to have 2 million PS3 consoles available for the system’s worldwide launch in November, followed by another 2 million by the end of December, and 2 million more by the end of March.”

“David Cole of DFC Intelligence thinks Sony’s decision to market the PS3 as a luxury item is a foolish one. The console will be available in two configurations, starting at $499, a move Mr. Cole describes as a “golden opportunity” for competitors Microsoft and Nintendo,” Red Herring reports.

“The electronics giant’s woes haven’t stopped with game consoles, either. Sony is linked to the mammoth recall announcement issued last week by computer giant Dell after the batteries were linked to fires starting in the laptops,” Red Herring reports. “Sony’s portable power woes continued Thursday, with Apple saying it plans to recall some 1.8 million laptops with Sony lithium-ion batteries.”

Full article here.

Related MacDailyNews articles:
Apple to recall 1.8 million Sony-made iBook G4, PowerBook G4 batteries – August 24, 2006
Dell issues largest safety recall in history: 4.1 million laptop batteries due to fire threat – August 14, 2006
Can Nintendo’s Wii end up number one in market share? – July 18, 2006
Nintendo Wii wins E3 ‘Best of Show’ award – June 01, 2006
Nintendo’s Wii steals show at Electronic Entertainment Expo – May 12, 2006


  1. I would really hate to be a Sony shareholder right about now. Talk about a company sliding into oblivion.

    At least they always had the video game console market firmly in hand, but now they’re even screwing that up royally too.

  2. I bet IBM Microprocessor are starting to wonder whether sacrificing Apple’s business to pursue CELL with Sony and Toshiba was such a good idea.

    Still, at least they’ve got AMD’s fabrication business which will be good when Vista ships…oh, wait – I think I’ve spotted a flaw.

  3. “Mitsubishi halved its PS3 sales forecast, predicting Sony will sell 3 million consoles. . . .”

    Mitsu has a helluva noive — even if it’s right. It made the exploding Pinto scandal look like a little match-girl dime novel. Who can believe anything Mitsu says? It has, or should have, less credence than Steve Ballmer flogging Vista by dancing to Puttin’ on the Ritz in Times Square.

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