myidisbb Posted March 9, 2007 Share Posted March 9, 2007 TOKYO (Reuters) - Sony Corp. (6758.T) said on Friday it will eliminate a key microchip from the European version of its PlayStation 3 (PS3) game console, reducing production costs as well as its compatibility with PS2 games. The move, which is expected to expedite the Tokyo-based electronics and entertainment conglomerate's effort to turn its PS3 operations profitable, helped send Sony shares up 3 percent by mid-afternoon.Sony, which competes with Microsoft Corp. (Nasdaq:MSFT - news) and Nintendo Co. Ltd. (7974.OS) in the $30 billion video game industry, now makes a loss for each PS3 it sells.Sony saw its television business posting a profit for the first time in two years in October-December, making its game division's profitability the biggest concern for investors.The PS3 is set to go on sale in Europe on March 23, following its North American and Japanese launches late last year.Unlike the PS3 being sold in the United States and Japan, the upcoming European version will not carry the microchip that offers graphic- and data-processing functions for PS2 games, cutting production costs, said a spokesman for Sony Computer Entertainment (SCE), Sony's game unit.The console will still be equipped with a different chip that processes graphics for PS2 games, but the backward compatibility of the machine will be lowered, the spokesman said.The dual-function chips that will be eliminated from the European version are being procured from within the Sony group.Sony packs the PS3 with its cutting-edge technology such as a Blu-ray high-definition DVD player and the Cell microchip, dubbed a "supercomputer on a chip," which provides lifelike graphics and high-speed downloading of game software and video clips.But they have driven up production costs, dragging Sony's game operations into a deep loss for the current business year ending March 31.Sony said in January that it expected losses in its game unit to exceed its previous estimate of 200 billion yen ($1.71 billion) in the year to March, but would aim to break even on games in the next business year.In another cost-cutting measure, Sony is planning to introduce Cell chips with circuitry width of 65 nanometres this year, replacing the current 90-nanometer ones.Narrower circuitry makes microchips smaller, cutting per-chip production costs.Shares in Sony were up 3 percent at 6,170 yen in afternoon trade, outperforming the Tokyo stock market's electrical machinery index (.IELEC.T), which rose 1.21 percent. Link to comment Share on other sites More sharing options...
Atasas Posted March 9, 2007 Share Posted March 9, 2007 Damn Sony UK... just today I was visiting theyr office in surrey (UK) and you woud;nt believe what a bunch of overpaid snobs they are! Link to comment Share on other sites More sharing options...
Bolt_Gundam510 Posted March 10, 2007 Share Posted March 10, 2007 Damn Sony UK... just today I was visiting theyr office in surrey (UK) and you woud;nt believe what a bunch of overpaid snobs they are!oh i can believe you there Atasas, they are so over payed on stuff. it's no wonder they are looseing money left and right. but sony has been able to take a bite and still be able to hold a good share of the game consol markit. Link to comment Share on other sites More sharing options...
Atasas Posted March 11, 2007 Share Posted March 11, 2007 U meant - "white elephant"- PS3? Link to comment Share on other sites More sharing options...
Bolt_Gundam510 Posted March 13, 2007 Share Posted March 13, 2007 i just want to get the color coal black my self. i wouldn't mind the darker the better for me as in color choise. i all ready had the ps2 i made sure it was all black. can't stand a rain bow game system. it would have to be all black or royal blue for me. :) Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.