Sony’s New Technologies Show Promise

Article Excerpt

SONY CORP. ADRs $46 (New York symbol SNE; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.0 billion; Market cap; $46.0 billion; WSSF Rating: Above average) aims to increase sales of its PlayStation 3 video game console with a new add-on device called “PlayTV”. This product will let users record and play back high-definition movies and TV shows. Sales of PlayStation 3 have lagged behind new consoles from Microsoft and Nintendo, mostly due to its higher price. But sales should improve as software companies release more games that take advantage of the PlayStation 3’s advanced processing and video chips. Another key to PlayStation 3’s long-term success is its ability to play high-definition Blu-ray DVD movies. Although Paramount Pictures and its affiliate DreamWorks recently decided to back HD-DVD, a rival high-definition format, other major studios including Sony’s own Columbia Pictures will continue to support Blu-ray. Leading retailers such as Target and Blockbuster are also dropping HD-DVD players and movies in favor of…