Sony eyes Vita push, feels Fitch heat
Sony Corp, set to report a $1 billion loss this year, is banking on a big slate of new software to drive sales of its new PlayStation Vita handheld games device, even as Fitch downgraded the Japanese electronics giant to a notch above junk. The Fitch ratings agency turned up the heat by downgrading Sony to BBB- - a notch above non-investment, or junk, grade - from BBB, citing the group's weakened financial performance and the challenges it faces in recapturing its former strong position in key markets. The Vita, featuring a 5-inch OLED display and 3G connectivity, sold out in advance bookings in Japan, where buyers have rushed to upgrade from the PSP. Sony has not provided a unit sales target for the Vita. The United States and Europe may pose a tougher challenge as a February 22 launch date for the Vita comes well after the crucial year-end holiday sales season. The challenge from smartphones and tablets comes on top of competition from long-standing domestic rival Nintendo, which aims to sell 16 million of its cheaper 3DS handheld games devices by March. Sony on Thursday said it was keeping to its target of selling 15 million PS3 game machines in the year through March. Another rival, Microsoft, doesn't offer a portable device. Sony, which has forecast a fourth straight annual loss this year, launches the Vita in Japan this weekend. It hopes a package of 24 software titles at launch will help the gadget avoid the fate of rival Nintendo's 3DS, which flopped shortly after launch, forcing a hefty price cut. Welshman Andrew House, who took the top job at Sony Computer Entertainment in September hoped the Vita would outsell its predecessor, the PlayStation Portable (PSP), which has shipped 73 million units since launching in late-2004.
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