Sony Computer Entertainment Inc. (SCE), reportedly facing an uphill battle for market share for home video consoles, implemented a series of strategies to strengthen the Playstation 3 (PS3).
As part of the strategies, the company will launch a new PS3 console with a 40GB hard disk drive (HDD) in Japan November 11, 2007. The recommended retail price is 39,980 yen (including tax).
Compared to existing models, the new PS3 has more carefully selected functions. Specifically, the new model is not compatible with PlayStation titles, it does not have a memory card slot and it does not support the playback of SACD media. In addition, the number of USB ports is reduced from four to two.
The power consumption and the console weight are also reduced from the existing model's 380 W and 5.0 kg to 280 W and 4.4 kg, respectively. The new model comes in two colors, namely the existing Clear Black and the newly introduced Ceramic White.
Moreover, SCE will cut the prices of the existing 20GB and 60GB HDD models. Starting Oct. 17, 2007, the recommended retail price of 20GB model will be reduced from 49,980 yen to 44,980 yen, and the 60GB model, currently sold at an open price, will be offered at 54,980 yen.
Sony Computer Entertainment Europe Ltd. (SCEE) of UK, a subsidiary of SCE, also launched the 40GB model Oct. 10, 2007 (UK time). In addition, SCEE announced the price reduction of Starter Pack, a set composed of a 60GB console, software and wireless controller, by 100 Euro.
Furthermore, Sony Computer Entertainment Korea Inc. (SCEK) of South Korea announced that MegaTV, a video-on-demand IPTV service provided by Korea Telecom Corp. of Korea, will be available on PS3 starting November 2007. After subscribing to this service, users can enjoy full-HD videos with video streaming playback software that can be downloaded for free of charge.
As of end of June 2007, the global cumulative sales of PS3 consoles reached 4.28 million units. SCE set the sales target for the FY2007 (April 2007-March 2008) to 11 million units. Although the PS3 sold only 710,000 units in the first quarter (April-June), the company has an aggressive plan to sell more than 10 million units during the remaining three quarters.
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