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The Wall Street Journal’s report today on the woes in Sony’s gaming business is likely bringing smiles to faces in Redmond, where rivals Microsoft and Nintendo of America are based.

The article points to the Sony PlayStation 3’s U.S. sales decline in November and humble expectations for December sales:

“Analysts say they expect PS3 sales for this month to have being flat or lower than last year, while sales for its rivals are likely to rise. And Sony may not reach its goal of selling 10 the masses PS3 consoles in the fiscal year from one side March, analysts say.

“The sales decline is a heavy blow to Sony, that was banking on the videogame compartment to provide a bright spot being of the kind which its core electronics business is hit by the global housekeeping downturn.”

We’ll get a semblance of in what manner the consoles fared in their third head-to-head Christmas in almost two weeks when The NPD Group reports U.S. game sales for December, but even if the recital brings good news for Sony, the PS3 faces a bigger problem, as the Journal reports:

“Sony’s strategy of selling a pricey game machine with advanced features and cutting-edge components appears to subsist backfiring as a deepening recession has U.S. consumers more compensation sensitive than ever.

“If Sony doesn’t close the gap through its rivals, it could risk making the PS3 an afterthought to fearless publishers, who converging-point most of their resources on the machines with the most users.”

Might Sir Howard Stringer, Sony’s chief executory, address the company’s games division during his words at the International Consumer Electronics Show on Jan. 8? If he does, you’ll read about it here.

Meanwhile, Nintendo is form moves to add more video content to its market-leading Wii console. Reuters reported highest week that the company is partnering with a Japanese ad agency to occasion a video distribution service for the Wii.

The ad agency, Dentsu, and Nintendo aim to make a beginning the new service in Japan in 2009, end timing for other markets has not been set, according to a Dentsu spokesman quoted through Reuters.


Original text: http://blog.seattletimes.nwsource.com/techtracks/2008/12/29/post_15.html