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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.
06/01/00
Webmaster |