Sony announces a $1.16 billion investment.
A little more than a month ago, Sony revealed expected lower profits due to high production and marketing costs associated with the release of the Playstation 2 in Japan. But they are not stopping there. The company made a bold statement at a press conference that the are planning to spend 125 billion yen or about $1.16 billion dollars for new manufacturing facilities to boost the production of the some main chips that are used in the Playstation 2.
More than half of that amount will go to build a new production plant while some will go to expand Sony's already established plants and other necessary expansions that will help the production and success of PS2.
It is pretty clear now that Sony is strategically placing a huge portion of their company to work around the Playstation 2 console. The system will allow them to get into the households of millions and millions of people around the world in a relatively short amount of time. At this point there is too much money at stake and if anything goes unplanned, there could be some really big problems.