Kutaragi: Sony's Hardware Strength May Be Declining

Given Sony's recent problems with defective laptop batteries and its PlayStation 3 launch troubles, even the president of Sony Computer Entertainment is admitting that the company is in trouble.

Sony's recent struggles present a challenge to its dominance, a Reuters report suggests

Sony's recent struggles present a challenge to its dominance, a Reuters report suggests

The Reuters piece ("Sony hits stumbling blocks on road to recovery") examines Sony's struggles in retaining its position as the dominant player in the cutthroat consumer electronics market.

If you asked me if Sony's strength in hardware was in decline, right now I guess I would have to say that might be true."

--Ken Kutaragi to Reuters

But the real eye-opener is a quote from Sony Computer Entertainment president Ken Kutaragi, who is quoted in the article. "If you asked me if Sony's strength in hardware was in decline, right now I guess I would have to say that might be true," Kutragai says following the announcement of the PS3's European launch delay to March 2007.

Sony has also had to drastically slash its forecast for PlayStation launch units from two million to 500,000 between North America and Japan; North America will receive 400,000 PS3s, while Japan will see just 100,000.

THE VERDICT by Sid Shuman Sid Shuman's Avatar

Interesting quote.

You know what occurred to me the other day? How many of the 400,000 PS3 launch units will make it to the US? Technically, those 400,000 PS3s will be shared between the US and Cananda ("North America").

Will the US get half of that? Three quarters? Nintety percent?

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