http://news.yahoo.com/s/nm/20051121/tc_nm/japan_sony_dc;_ylt=Aime1jWabyEbC41qj41ZMMdU.3QA;_ylu=X3oDMTA4ZnRnZjhkBHNlYwMxNjk1
TOKYO (Reuters) - Sony Corp. (6758.T), the maker of Playstation game consoles, may lose its iron grip on the market for game machines as rival Microsoft Corp. (Nasdaq:MSFT - news) launches a new model just in time for the holiday season.
Analysts and game fans say PS3 is the sexier game machine with twice the processing speed of Xbox 360 , next-generation DVD technology Blu-ray, and seven control pads that can connect wirelessly to the console.
Sony, the world's second-largest consumer electronics maker that dominates the console market with its Playstation 2 (PS2), may lose more than 20 percentage points of its 70 percent market share with much of that going to Microsoft.
"The risks are surprisingly higher than people think because unless they can replicate its 70 percent dominant market position, things are going to be very difficult for them going forward," said Hiroshi Kamide, a Tokyo-based game analyst for KBC Securities.
Wedbush Morgan Securities said in an industry report in July that it expected worldwide PS3 and Xbox 360 sales to be tied at 23 million units each in 2007.
Sony's game business accounts for about 12.6 percent of the group's total revenues, and it has sold 102.5 million Playstations and 96 million PS2 machines to date.
TOKYO (Reuters) - Sony Corp. (6758.T), the maker of Playstation game consoles, may lose its iron grip on the market for game machines as rival Microsoft Corp. (Nasdaq:MSFT - news) launches a new model just in time for the holiday season.
Analysts and game fans say PS3 is the sexier game machine with twice the processing speed of Xbox 360 , next-generation DVD technology Blu-ray, and seven control pads that can connect wirelessly to the console.
Sony, the world's second-largest consumer electronics maker that dominates the console market with its Playstation 2 (PS2), may lose more than 20 percentage points of its 70 percent market share with much of that going to Microsoft.
"The risks are surprisingly higher than people think because unless they can replicate its 70 percent dominant market position, things are going to be very difficult for them going forward," said Hiroshi Kamide, a Tokyo-based game analyst for KBC Securities.
Wedbush Morgan Securities said in an industry report in July that it expected worldwide PS3 and Xbox 360 sales to be tied at 23 million units each in 2007.
Sony's game business accounts for about 12.6 percent of the group's total revenues, and it has sold 102.5 million Playstations and 96 million PS2 machines to date.