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March 23, 2007

Sony Releases PlayStation 3 in Europe

By Raju Shanbhag, TMCnet Contributing Editor

European gamers now have a new toy to play with. Sony this week  launched its PlayStation 3 (PS3) console there. The company has been facing challenges during the launch period of its next generation consoles, notably lagging behind Microsoft (News - Alert) and Nintendo in terms of sales.



 
Yet, Sony remains a big name in consumer electronics, and has a strong reputation among gamers. Banking on this reputation, Sony released an ambitious one million PS3s in Europe and Australia, and as a further tactic to boost sales offered free, 46-inch high-def TVs to buyers.
 
Sony had to spend about £250,000 on television sets to be given to gamers who purchased its PlayStation, but claims the investment was worth the effort. There were long lines of gamers and enthusiasts in front of shops selling the new Sony PlayStation. Some had to wait for more than 36 hours.
 
Virgin’s flagship store on Oxford Street, London, opened at midnight the first day of the launch, catering to eager gamers. Police expressed concern about possible muggings, and Sony countered by offering free taxi service to gamers leaving the store with their new toys.
 
Sony’s new PlayStation boasts a variety of online capabilities, a high-definition Blu-ray DVD player, and gaming powered by the Cell processor. These souped-up features have convinced buyers to shell out £425 (599 Euros) on the new gadget.
 
Although Sony maintains that the free TV promotion was merely a reward for dedicated gamers who waited in line for hours to pick up a PS3, it seems likely that the move was also a tactical one for the company to help ensure a positive product launch.
 
Sony had good reason to be concerned about launch of PS3 in Europe. When the console hit U.S. store shelves last November, sales were less-than-encouraging. PS3 was comfortably outsold by competitive products from Microsoft and Nintendo—in the case of Nintendo’s Wii, by a factor of two to one.
 
Yet, Sony can perhaps take some solace from the fact that, during the same stage of its release, sales of Microsoft’s Xbox 360 were slightly less than PS3’s current figures.
 
The European launch of PS3 came four months behind schedule, due to delays that Sony described as “regrettable.” The company has indicated, though, that the delay was necessary to bring customers more games, more Blu-ray movies, and an updated online PlayStation network.
 
Sony said it expects to outsell its rivals by the end of 2007.
 
Raju Shanbhag is a contributing editor for TMCnet. To see more of his articles, please visit his columnist page.







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