At the Electronic Entertainment Expo (E3) trade fair in Los Angeles, Sony Corp. (SNE) launched its next generation portable gaming device, PlayStation Vita. The new handheld device will hit the stores before the winter holidays.
PlayStation Vita has front and back cameras, a touchscreen in front, a touch pad on the back and two knob-like joysticks. The device can be connected to Internet-based PlayStation Networks, and thereby gamers have the option of competing with a host of other players using the PlayStation 3 consoles.
PlayStation Vita is also equipped with a motion-sensing accelerometer.
The Wi-Fi version of the device will be available for $249 and another version with a cellphone service will cost $299. Additionally, buyers would have to subscribe to a cellular data plan. Sony has chosen AT&T Inc. (T) for an exclusive agreement for providing the cellular services in the US. The device allows gamers to be interconnected over cellular networks and Wi-Fi hotspots and it also uses the latest GPS location-tracking technology.
Sony also launched “Resistance 3”, a 3-D shooter game in the PS3 format, bundled with a pair of 3-D glasses and a 24-inch 3-D monitor, all for $499, the most competitive price currently in the 3-D games market.
Sony has recognized the popularity of games in the “apps” format and thus decided that its PlayStation games will now be available on Android-based smartphones. Sony plans to start the service named “Play Station Suite” for this category and is expected to provide further details regarding the service in the coming months.
We believe that Sony is gaining a competitive advantage in pricing its products and concentrating on innovation. But the electronics maker is reeling under pressure from the impact of the tsunami and earthquake that struck Japan on March 11. The natural disaster hampered Sony’s operations and is expected to negatively affect the company going forward.
We have an Underperform recommendation on Sony Corp. in the long term (for the next 6 to 12 months). Currently, Sony has a Zacks #5 Rank, which implies a Strong Sell rating in the short term (1-3 months).
SONY CORP ADR (SNE): Free Stock Analysis Report
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