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GAMING / INDUSTRY

  Will Sony Survive The PS3

By David Richards and David Walker | Sunday | 12/02/2006

The pressure is mounting on Sony as the launch of the PS3 gets close. Projections from Merrill Lynch say that Sony will drop a whopping a $5 billion over the next 3 years competing against the Xbox 360.

Speculation is rife that Sony will showcase its first full working version of the Play (PS3) at the upcoming Taipei Game Show in Taiwan (February 16). Sony has already shown the PS3 in the US and Japan. In each instance, however, the boxes on display are believed to have been dummy cases, not fully operational prototypes. The Success of the PS3 is critical to the very future of Sony. The Company is currently in trouble and key products like the PS3 and LCD TV are the key to Sony's future success.  While the rest of Sony has struggled, the PlayStation division has been a cash cow that the rest of the company has relied on it to prop up its failing consumer entertainment divisions. .

With Microsoft having already launched the Xbox 360 to overwhelming demand, many are wondering what the PS3 from Sony will truly look like. It wouldn't be exaggerating to say that Sony is betting big on the PS3. With the next-gen Hi-Def format war still raging, Sony is betting a substantial portion of its future on Blu-Ray. While most analysts agree that HD-DVD will not likely win, some analysts are openly wondering whether Blu-Ray will as well. If it doesn't, Sony could be in serious trouble. In order for Sony's Trojan Horse Blu-Ray strategy to work, the PS3 has to succeed as a gaming console. It has to deliver pure horsepower and great graphics. Sony also has to deliver an online strategy that turns gamers on. Right now there are serious reservations as to Sony's online strategy compared to Xbox Live.

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