Sony Corp (ADR) (NYSE:SNE) is embracing itself for bigger things come next year. It will be introducing its virtual reality headset and will provide more than 10 titles. In an interview at the Tokyo Game Show, Sony Computer Entertainment Chief Executive Officer Andrew House said that the PlayStation VR headset will be priced as a new gaming platform. As such, numbers will not be given.
The Japanese company is trying to revive its profits hence the shift away from televisions and instead refocus towards games, image sensors and movies. Introduction of the virtual reality headset will go a long way in extending the Company’s sales lead over Microsoft Corp.’s Xbox One.
According to House, it is possible for VR to create something very simple but still very magical. In any case there is a lot of interest and work happening among smaller teams who are working on the same.
The face-covering headset is a built-in display that offers a resolution comparable to a high-definition TV. Besides, it’s a 100-degree field of view is somewhat more than the ordinary human range. Sony’s shares have so far gained 30% within this year. It jumped 4.2% in Tokyo transacting to close at 3,224.5 yen.
But who is competing with Virtual? Facebook Inc.’s Oculus Rift and HTC Vive are in the competition line up. They are from Taiwanese smartphone maker HTC Corp. and game publisher Valve respectively.
Within a decade, VR is expecting to have a gear and content market worth more than $60 billion with the entry cost of the hardware dropping from about $800 to $300. In July, Sony garnered a 16.5 million sales target for PS4.
So far the PS4 is way ahead in terms of sales compared to Microsoft Corp.’s Xbox One. By the end of this year, Sony will have sold 34 million machines compared to the 20 million Xbox Ones. Sony Corp (ADR) (NYSE:SNE) will also give a price reduction by 13% so as to maintain sales momentum. Already the PS4 is $50 cheaper than the Xbox One in the U.S.
