Sony introduces new service with its Play Station 3

If you own a Plays Station 3 and if you are a resident of the USA, then there is great news waiting for you. From now on, you can download movies and episodes of your favorite television series from the internet with your Play Station3 console. On June 26 2008, Sony Corporation (TYO:6758) said that they are going to introduce this new system in the USA within weeks. Sony has been working on this service since 2006. Sony Computer Entertianment CEO, Kazuo Hirai, said that the service is going to be launched in the USA and then it will be introduced in Europe and Asia. Guardian reports:

Hirai did not go into specifics about the facility and observers expect further pronouncements about the initial library of titles at next month's E3 gaming convention in Los Angeles.

What will be of interest is where the content will come from. Sony's film studio has naturally pledged allegiance to the cause but so far supply deals from other studios have not been completed.

From this autumn, Sony Corporation will also launch a new video service that will allow owners of its Bravia television to access the Internet and stream content.

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Guardian

Sony Corporation's share falls by 4% after announcing its business strategy

After Sony Corporation’s chairman, Howard Stringer, announced the company’s new strategy, Sony Corporation observed a 4% fall in its share prices.

On June 26 2008, at a press conference in Japan, chairman Howard Stringer said that Sony Corporation (TYO:6758) is going to increase the number of online products and target the emerging markets for its seven types of business. However, investors are not sharing Stringer’s optimism. Looking at the unfavorable economic conditions, they are losing interest. Reuters reports:

Sony said on Thursday it aimed to double revenues from the fast-growing markets of Brazil, Russia, India and China to 2 trillion yen ($18.7 billion) and invest 1.8 trillion yen in key businesses and technologies as part of a three-year strategy.

"Sony's shares are not being sold because investors thought the mid-term business plans were negative. The plans are not bad," said Soichiro Monji, chief strategist in the equity management department at Daiwa SB Investments.

Interestingly, at the flat market on Thursday Sony’s stock gained 2.8% but in the morning session in today’s stock market, share prices of Sony Corporation dipped 4% at 4860 yen.

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Reuters

Sony targets the emerging markets to increase return on equity in the next three years

The current fiscal year has been tough for Sony Corporation (TYO:6758), one of the largest consumer electronics company in Japan. All the major products of the company lost to its competitors. Its share price also fell at the Tokyo Stock Exchange. Now, the company is desperate to be back in business. Recently, in a press conference, Sony Corporation’s Chairman Howard Stringer announced to increase the companies Return on Equity (ROE) to 10% in the next three years and level the company’s profit margin with that of Samsung Electronics Co. Ltd.(SEO: 005935) and Nintendo Co.Ltd.(TYO: 7974) This new target is double the company’s current ROE level of 5.8%. Chairman Howard Stringer also failed to meet the earlier operating margin target. Bloomberg reports:

``Sony will lose its place as a global leader if its ROE stays lower than 10 percent,'' Mitsushige Akino, who manages $557 million at Ichiyoshi Investment Management Co. in Tokyo, said by telephone. ``The company will face enormous difficulty should it fail to achieve it.''

Return on equity, or profit divided by book value, measures the earnings generated on the investment by shareholders. Matsushita Electric Industrial Co., the world's largest consumer- electronics maker, plans to raise its returns to 10 percent by next fiscal year.

When asked about his strategy, Stringer said that his company will increase number of products that are sold online. Sony will also target the emerging markets such as, Brazil, Russia, India and China over the next three years. Sony will focus on its seven businesses in these markets.

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Bloomberg

Samsung Electronics Co. Ltd. takes the top position in global LCD market

According to the report of market research firm Display Search, Samsung Electronics Co. Ltd. (SEO: 005930) is the current LCD market leader. The South Korean multinational giant took up 22.1% of the global LCD market by revenue shares in the first three months of 2008. Japan’s Sony Corporation (TYO:6758) and its major domestic rival Sharp Corporation (TYO:6753) took the second and third position by gaining 18.1% and 10.1% over the same period. Samsung has also remained the top global brand for the ninth straight quarter in terms of revenue, maintaining a 39% year-on-year growth. Korea Times reports:

By shipments, the company ranked top, while Sony was No. 2 on a revenue basis for the third straight quarter, declining to about 13.2 percent revenue share after a strong fourth-quarter performance. LG Electronics remained the third-largest player, leveraging a No. 2 unit share position to offset lower than average selling prices (ASPs). ASP is a key measurement to gauge profitability.

LCD TV’s continue to post the strongest growth, rising 45 percent year-on-year to 21.1 million units, though this was the weakest quarter of growth to date.

On the other hand, Japanese company, Panasonic, took over the top position in global Plasma television market. The company had the top Plasma Display Panel (PDP) revenue share of 33.7%; followed by Samsung at 22.7% and LG 16.4%. Samsung’s PDP sales rose 20% to nearly 2.8 million units most of which comprised of 32 inch models.

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Korea Times

Earth quake forced to change Sony and Sharp's sales projection in China

The May 12^th earthquake has been a major shock for the people of China and this is also hurting the business of the country. Sony Corporation (TYO: 6758) and Sharp Corporation (TYO:6753), two of the largest Japanese electronics companies are expecting lower sales for unknown period of time. Normally, summer is a big sales season but the death and destruction has spoiled people’s mood for shopping. Every day, they are seeing death and destruction on the television. Sony’s camera sales has dropped 20% and it has changed its Bravia TV sales projection. Sharp Corporation, Japan’s largest LCD monitor producer is also expecting lower sales due to earth quake shock. Bloomberg.com reports:

China's electronics sales may have fallen 10 percent in May from April because of the quake's impact on consumer spending, said Kevin Wang, a Shanghai-based analyst at researcher iSuppli Corp. Retail sales in the world's fastest-growing major economy probably slowed last month after surging the most since 1999 in April, based on economists' estimates compiled by Bloomberg.

Sony rose 1.1 percent to 5,480 yen at the end of trading on the Tokyo Stock Exchange, while Sharp fell 1.9 percent to 1,778 yen. The benchmark Nikkei 225 Stock Average climbed 1 percent.

Sony has delayed its promotional offers to liquid-crystal display. Best Buy Co.Inc. (NYSE:BBY) the largest US electronic store chain also postponed plans to bring Japanese all-girl band Morning Musume to China. Despite the emotional shock of the people, Sony is expecting to sustain a higher than 30% sales growth.

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Bloomberg.com

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