Sony (NYSE: SNE) may have delayed the debut of its PlayStation 3 juggernaut, but that doesn't mean the electronics giant has no aces up its sleeve.
That's the great thing about having major franchises in not just one
but two arenas. Sony may essentially lead the console market, but it
also has a palpable presence on Nintendo's turf -- I'm talking about the PSP handheld wonder, of course. And now, Sony has upped the game concerning that platform.
Looks like those in the market for a shiny new Sony portable device will have a choice.
Instead of being forced to shell out $250 for a PSP with a couple of
accessories, consumers will now be able to buy just the PSP and the
requisite rechargeable battery system for about $200. This is pretty
clever, actually, because it sort of feels like it's a price cut when
it isn't, exactly. Granted, the case that came with the $250 model
might not be so sacrosanct, but users will end up springing for a
memory stick and headphones to go along with the lesser-priced PSP.
Nevertheless, this promotion should convert more kids (and more than
a fair amount of adults, too) into PSP owners; with Easter around the
corner, the fuel is there to pump this scheme up. Not only is that
music to Sony's ears, but it's also a merry tune to companies such as Activision (Nasdaq: ATVI) and Electronic Arts (Nasdaq: ERTS).
We all know that drill by now -- a bigger installed user base equals
better shareholder-value prospects for best-in-class software
publishers. Plus, movie studios owned by the likes of Time Warner and Lions Gate Entertainment
will enjoy increased opportunities to monetize their libraries over the
PSP's UMD format -- remember, you can watch movies and listen to music
on the system in addition to playing sports and fantasy games.
Read the rest of the article on the Motley Fool here.