Sony America has announced that they will be cutting the price of the aging PlayStation 2 console by over 20 percent to $99.99 USD beginning tomorrow.
The company hopes the new deal will help push the lifespan of the console, which has sold almost 140 million units since its launch in late 2000.
The PS2 will now retail for $300 USD less than the cheapest PlayStation 3 model, which analysts and consumers alike agree, needs a price cut. Sony notes however that the company still loses money on every console sold, so a price cut would deepen current losses.
Sony is currently undergoing a major restructuring and is expected to announce their first net loss in 14 years.
Recently, Microsoft product management director Aaron Greenberg slammed Sony over their console sales figures, saying: “What we’re finding in our research is that a large portion of the volume we’re driving with Xbox 360 purchasers is actually PS2 owners choosing Xbox for the next generation. Xbox continues to head north while the PS3 is heading south. We’re gaining share.”
Result for: restructuring
Charter Communications, the fourth largest cable company in the US, has announced its intention to file for Chapter 11 bankruptcy, on or before April 1st.
The company has restructured its debt obligations and could see a reduction of almost $8 billion in debt. The ISP noted it has about $800 million in liquid cash to help with restructuring and daily operations during its bankruptcy.
Current common stock holders will have their shares canceled, but debt holders and bond holders can recieve “new notes, equity or cash, depending on the seniority and terms of the agreement.”
Paul Allen, co-founder of software giant Microsoft, controls Charter and will remain on the board with the largest voting interest.
Result for: restructuring
Panasonic Corp. has announced that it intends to acquire its Japanese rival Sanyo Electric Co. in a move that would create Japan’s largest electronics maker. The acquisition has an estimated price tag around $8.8 billion, a price Panasonic would pay to gain competitiveness in rechargeable battery production and solar power technology. Panasonic, the world’s largest plasma TV maker, is sitting on $10 billion in cash.
The deal has many problems to be solved however. Panasonic needs to figure out what to do about Sanyo’s loss-generating divisions which include microchips and home appliances. “Strategically (the deal) makes sense, though it doesn’t necessarily make sense for Panasonic to take on every single bit of Sanyo Electric,” said Hannah Cunliffe, fund manager at Germany’s Union Investment, which holds Panasonic shares. “There has to be some relatively aggressive restructuring.”
Due to the demand for rechargeable batteries for mobile phones, notebooks, portable media players and even cars, Panasonic would like to capture Sanyo’s leading position with the technology. Additionally, Sanyo is the world’s seventh largest manufacturer of solar cells. “Adverse business conditions are making it difficult for us to achieve the kind of growth we have been striving for,” Panasonic President Fumio Ohtsubo told a news conference. “We need a new growth engine within our group.”
The potential deal has more historic significance in Japan. Panasonic was founded, and until recently named after admired entrepreneur Konosuke Matsushita. In the early days of the company, Konosuke Matsushita’s brother-in-law Toshio Iue worked as his right-hand man, until he broke away and formed Sanyo.
