Sony share price: Company comfortable with PS4 sales estimates

on Nov 14, 2013
Updated: Oct 21, 2019
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iNVEZZ.com, Thursday, November 14: Sony Corp (TYO:6758) is comfortable with analysts’ expectations that it would sell three million units of its latest video game console, the PlayStation 4, by the end of this year, a company executive has told Bloomberg. The PS4 hits the stores in the US tomorrow, a week earlier than the Xbox One, the new gaming machine from rival Microsoft Corp (NASDAQ:MSFT). The device will debut in Europe on November 29, and will be on the shelves in some 32 countries for the holidays. The new Xbox will debut in 13 countries, including the UK and other European countries.

In today’s Tokyo trading, Sony shares closed 2.29 percent higher at JPY1,786.00.
Trade these shares now through Hargreaves Lansdown from £5.95 per deal.
**Smooth launch**
Earlier this week Jack Tretton, president and chief executive officer of Sony’s US computer entertainment division, said in an interview for Bloomberg that the company would have adequate supplies of the PS4 through Christmas and was comfortable of hitting five million sales by March 2014.

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“This is a marathon, not a sprint, but getting out to a nice start is a good thing,” Tretton told the newswire. “That hurdle has been cleared. We’re very, very confident we’re in great shape.”
Tretton’s remarks suggest that the company has put serious effort into ensuring that it won’t experience the same supply issues that hampered early sales of the PS3 in 2006. Having a smooth supply is very important for Sony as it seeks to make the most of its head start over Microsoft. Improved planning has raised production yields, collaboration and the absence of last-minute sprints — for example, to get parts ready before shipment –Tretton told Bloomberg.

“This time it’s very, very smooth,” he said.
**Head to head**
Last month Colin Sebastian, an analyst with Robert W. Baird & Co. in San Francisco, estimated that Sony and Microsoft would each sell three million units of their new gaming devices this year, according to Bloomberg.


“We’re very comfortable with it,” Tretton said. “I’m excited about next week to be able to talk about what was sold as opposed to what we may sell.”
The two companies are expected to be the main players in the latest chapter of the console wars. Nintendo Corp also released a new console called Wii U a year ago, but the lukewarm sales and the fact that the device is significantly less powerful than the competition have prompted expectations that the company would be somewhat of an underdog in this console cycle.
**As of Thursday buy Sony shares at JPY1,786.00**
**As of Thursday sell Sony shares at JPY1,786.00**
Trade these shares now through Hargreaves Lansdown from £5.95 per deal.
Prices can go up and down meaning you can get back less than you invest. This is not advice. Dealing services provided by Hargreaves Lansdown.

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