Sony sets ambitious target for PS4 console

Sony has set an ambitious initial sales target for its newest PlayStation game console, motivated by the generational decline that has tripped rival Nintendo, whose most recent machine failed to replicate the massive popularity of its predecessor.

Sony said today it expects to sell 5 million units of the PlayStation 4 between the console’s November launch date and the end of the Japanese fiscal year in March.

That would surpass initial sales of the older PlayStation 3 model, which sold 3.55 million units in the first five months after its launch in November 2006. Makers of game consoles have struggled to win the challenge presented by smartphones and tablet computers, which have lured away casual game players with simple, low-cost games such as “Angry Birds” as well as increasingly sophisticated versions of console-based action and sports titles.

Sony will be launching the PlayStation 4 at the same time as Microsoft introduces its newest console, the Xbox One. Analysts were surprised by Sony’s pricing strategy, which set the cost of a PlayStation 4 at $399, a full $100 below that of the Xbox. Last time round, with the PlayStation 3, Sony introduced two versions priced at $499 and $599 – too high for many consumers. Initial sales fell short of projections, a result that Sony hopes to avoid this time.

Sony is trying to appeal to its traditional market of hardcore game fans, the sort who queue for hours to buy the latest installment of the Grand Theft Auto franchise and will judge the PlayStation 4 by the comfort of its controllers and the speed of its graphics processors.

At the same time, however, it is broadening the machine’s functions as a hub for downloading music and videos.

“It’s become an old concept that consoles are just for games,” Andrew House, head of Sony’s game business, told reporters at the Tokyo Game Show, where the company announced the sales target. “PS4 will not only meet the expectations of core gamers but possibilities of the console are way beyond that.”

Michael Olsen, an analyst at Piper Jaffray, expects the PlayStation 4 and the Xbox One to sell 3 million units each in the crucial holiday sales season, when they will make or break their initial projections.

Sony console department plays a leading role in the company where TVs are losing sales as the market is highly saturated. The current consensus among 19 polled by Money CNN investment analysts is to hold stock in Sony Corp. This rating has held steady since September, when it was unchanged from a hold rating.

Sony Corp. shares have gained more than 90% year-to-date.