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Sony, Canon to shine as Japan Electronic Makers report

Sony, which ruled the $30 billion video game industry over the last decade, has seen tepid demand for its latest game console, the PlayStation 3, launched in November.

But this has been more than offset by growing demand for digital cameras and camcorders, higher profit at its mobile phone venture with Ericsson (ERICb.ST) and a weaker yen, which boosts its overseas earnings when converted into the Japanese currency.

"There was a time when Sony's game unit earned most of the group profit and people said Sony is practically a game company," Mizuho Investors Securities analyst Mitsuhiro Osawa said.

"But its electronics division started to show signs of a revival last year. The pace of its recovery is picking up this year and it seems to be able to hit an operating margin of 5 percent."

Chief Executive Howard Stringer, the first non-Japanese to run Sony, has been targeting a 4 percent margin for its mainstay electronics division for the current business year to March 2008, and a 5 percent margin on a consolidated basis.

Sony President Ryoji Chubachi told Reuters in an interview this month operating margin at the electronics division, which makes Bravia LCD TVs and Cyber-shot digital cameras, was likely to exceed the 4 percent target.

Analysts on average expect Sony to post an operating profit of 51.85 billion yen ($428.3 million) for April-June, up from 27.05 billion yen a year earlier, according to Reuters Estimates.

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MK_Red3565d ago

The real rise for PS3 and Sony in general would be in second half of 2007 starting July with PS3 Price-cut, 5 free BLu-ray movies campaign and arrival of PS3's first batch of big exclusives from Lair to Ratchet to Uncharted ot Heavenly S.

XxZxX3565d ago

Howard stringer is the man.. Wow turning an sinking ship to profit company. This guy is good.

Maddens Raiders3565d ago (Edited 3565d ago )

I still can't understand why they don't just cokk the hammer and start firing off 20 gig PS3's stateside for people that don't care about wi-fi and extra storage, If they want to go buy a bigger HDD, then fine, but make more money with a lower priced SKU in the shortrun.

Keep the incentives on the 60 though while still offering the free movies and $100 off. But a $399 PS3 would be right on time about now imho of course.

Armyless3565d ago

I wonder why Sony is striving so hard to bite the ultra-hardcore, rather than satiate the Playstation masses?

The only thing I can guess is that they're chewing on the console launch perspective of previous generations. (PS2 launch @ $300 comes to mind... the cheapest DVD player available at the time). Please, Sony, offer the starving next-genr's their Sony fix!

Maddens Raiders3565d ago (Edited 3565d ago )

why they don't bring it to the masses. I can only guesstimate that maybe, just maybe the 65nm chips and beyond outweigh the cost effectiveness of upgrading the earlier 20GBs, made in a run that didn't adhere to the subsequent rule change and they just want to phase it out in old Japan.

And, that would of course lead to them having to jack up the price and probably (in the eyes of the consumer) get really labeled as price rapist. As a matter of fact I'm quite sure that would happen. Otherwise I have no idea why they're phasing out "the little PS3 that could."

Hell, who knows...with SNE it could possibly all boil down to aesthetics. Think about it.

felidae3565d ago

let's all start to agree with whatever TheMART says.

everybody should say how bad sony and the ps3 are.

Itachi3565d ago

dude what is your avatar about please can you change it and i will give you a bubble

Kyur4ThePain3565d ago (Edited 3565d ago )

Some are, some are not.

@KT below
Now that's going a little far. As for professional cameras go, I will agree, Sony does not play with the big boys. But in the consumer, point-and-shoot segment, Sony hold their own.

the_round_peg3565d ago (Edited 3565d ago )

Shaka2K6: Don't be a stupid moron. You know nothing about photography. Let me give you a little hint here:

The three Japanese companies that make the best cameras in the world are: Nikon, Canon, and Minolta. They are the "major three" or "big three" in the photography business, and they are the brands professionals choose. Sony does NOT even have a place in the photography industry.

Sony does not even make SLRs or high-end lenses. Wait, correction: Sony did, but Sony SLRs are complete failure and are completely crushed by Nikon and Canon, which practically own the photography industry. What photographers in their right minds would buy a Sony SLR?!?

the_round_peg3565d ago (Edited 3565d ago )

So why should you pick Nikon, Canon, and Minolta over Sony when it comes to non-professional cameras aka dummy cameras?

Because Nikon and Canon are the camera experts. They make cameras for the professionals, for people who know camera and picture quality. They know how to make lenses.

That's their area of expertise: they make the sharpest, clearest lenses that produce the most beautiful colors and images that totally PWNs whatever Sony could possibly make. D'uh. (And if we counted the German camera brands, Sony would fall even further behind.) And when they make point-and-click cameras (i.e., that's what we call "dummy" cameras,) they carry over their lenses expertise.

Of course, if you're not into photography, then you wouldn't know that, you would go for Sony. So, next time, when you buy a camera, get a Nikon or Canon and skip Sony if you want to have better lenses quality and be able to produce better pictures.

macalatus3565d ago (Edited 3565d ago )

That's good news!! I'm what you may also call a "Canon Fanboy" as I own a Rebet XT (upgrade in the near future), some lenses (50mm f/1.8, 18-35mm F/3.5-5.6 and 70-200mm F/4L). Take that, Nikon!

As much as I love Sony, but as a photographer, I have no interest in their SLR cameras. I'm not saying that their cameras suck, it's just that I have never been impressed by them and I have more trust on Canon in terms of reliability. In short, Sony is a "noob" in when it comes to equipment in serious photography circles.

@ktchong,
Wow, for once, I do agree with you! But, (even I myself have to bitterly swallow this statement) as Sony proved when it first showed the PS1 to an unbelieving world, they MAY improve in their optic lenses. However, unlike the videogame industry, it may take them literally decades to match Nikon and Canon in terms of brand recognition. That also includes creating a loyal base of consumers/photographers (and no, that DOESN'T include the PS3 fanboys).

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