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Sony PSP Flying Off Shelves - 200,000 First-Day Sales

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playstation portable psp: Mon Dec 13, 1:47 PM ET Business - NewsFactor

Playstation Portable PSP vs nintendo? Nothing from usa?

Kimberly Hill, www.newsfactor.com

playstation portable psp: Sony's (NYSE: SNE - news) entrant into the handheld gaming market -- the PlayStation Portable -- reportedly has sold more than 200,000 units on its first day in Japan. The manufacturer's goal is to sell 500,000 units in Japan by the end of this year, and 3,000,000 worldwide by March 31st of next year.

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The device's launch is typical of Sony, Yankee Group's Mike Goodman said. "Their goal is to change the dynamics of the marketplace," he said.

"They were successful in 1995 when they launched the PlayStation; they brought console games to adults and greatly expanded the marketplace."

Market Expansion

That expansion is the objective again, as Sony enters a field dominated for years by Nintendo (news - web sites), which controls somewhere between 90 and 95 percent of the handheld game systems space, explained Goodman. If Sony were to come out with a comparable system, it would be scraping for any portion of market share.

"Even with the vaunted Sony brand in gaming," Goodman noted, "they would be destined to be a bit player. But that's not the way Sony enters marketplaces."

Portable Entertainment

Instead of coming out with a device that simply emulates Nintendo's, Sony has launched the PlayStation Portable with both audio and video capabilities. This makes it a game system and media player in one.

Once again, Sony is looking to expand the market for gaming systems from the adolescent-male demographic to a much wider swath. The portable device can serve commuters as a music player as they ride the train, and traveling families as they motor around in their mini-vans.

Given the enthusiastic initial response, Sony has reportedly tried to increase its production of the new device. However, agreements already in place with suppliers of components will make it hard to manufacture and ship more units than originally planned in the near future.

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