Boston, MA 06/04/2014 (wallstreetpr) – The Tokyo-based electronics giant Sony Corp (ADR) (NYSE:SNE) has stopped the shipment of its handled gaming device known as PlayStation Portable (PSP). However, the company has handed Europe a special treatment with SPS.
While the company stopped SPS shipment in North America in January this year and announced an end to the sale of the device in Japan by this month, Sony said it will continue to sale the handheld game device in Europe but for a limited duration this year.
Sony introduced SPS in December 2004 and by 2012, the company had sold about 76 million units of SPS. The company last provided sales tally for SPS two years ago (2012). Although SPS will be no more, the machine’s legacy will remain around the world where it took gaming on portable devices a notch higher.
During its heydays, SPS gave Nintendo’s DS a run for its money in the gaming world. However, the intense competition also saw sales of the machine declining in the latter years.
Pushing a new device
In halting the sale of SPS, Sony Corp (ADR) (NYSE:SNE) is attempting to offer support to its new and perhaps promising handheld game machine known as PlayStation Vita. The device features LCD screen, longer-life battery and up to 8 G memory card, and it is also priced competitively.
Although Sony believes it can generate bigger revenue in the handheld gaming device business, to shore up its balance sheet, analysts say the run has not been easy for Vita, and that means Sony has not been able to make significant sales of the device.
Smartphone eating into console sales
The popularity smartphones and tablets has eaten into the sales of game consoles and Sony Corp (ADR) (NYSE:SNE) and its peers in the console business are taking the heat. However, Sony recently announced at least two joint ventures to push the sales of its newly updated PlayStation 4 in China. Early this year, the Chinese government lifted a ban on the sale of consoles and that opened an opportunity for Sony and Microsoft Corporation (NASDAQ:MSFT), which launched its most advanced console Xbox One late last year.
