Sony Corp. (SNE): Can they Comeback?

old school walkmanFollowing the release of a slimmer, cheaper model, weekly sales of Sony's (NYSE:SNE) PlayStation 3 hit a record in Japan last week totaling 150,252 units in the four days since it went on sale.  Shares of Sony haven't done much lately, they are down 6% in the last month and hanging out around $26 -- is Sony played out like an 80's WALKMAN or could it be game on?

PRICE WARS
Japanese weekly sales of the Sony (NYSE:SNE) Playstation 3 leaped to the highest point since the platform's Japanese debut on November 11, 2006 with the introduction of its new, cheaper "slim" model, according to a Bloomberg report that cites research firm Enterbrain Inc. The new model sold 150,252 units in the four days following its launch on September 3, bringing weekly sales to 150,832 units. Microsoft (NASDAQ:MSFT) countered Sony's 25% price cut by slashing the price of its most expensive Xbox 360 by $100 to $300.

sony pspThen there's the PSP, since the introduction last October of Sony’s PSP-3000, a slimmer version of its PlayStation Portable machine, sales jumped to 141,270 units in four days, Enterbrain said.

Nintendo’s slimmer version of its DS handheld sold 170,779 units in the country when it was introduced on Nov. 1, 2008, the researcher said.

More on the PSP from IGN.com -- With the impending release of the PSPgo system, it only makes sense
that Sony also has a PSP Firmware update up their sleeves. Sony
Computer Entertainment issued PSP System Software Update version 6.00
late Wednesday night in both North America and Europe (also likely
Japan, Australia and other territories any day now, if it's not already
available by the time you read this.)

While that 6.00 sounds like a major step up for the system (the
last significant version update was v5.51 way back in June, a simple
stability patch,) PSP owners racing to get the latest features
installed onto their PSPs may be in for a bit of disappointment. 6.00
is sadly lacking in major features or upgrades (and at least one change
seems to make the PSP a little

worse
somehow.) Of course, Sony Computer Entertainment has always asserted
that its Update naming convention doesn't mean what people expect it to
mean -- just because the number jumped from 5.0 to 6.0 doesn't mean
that this should be considered a "major" system update, and bigger
updates to the interface may be around the corner still. Even so, this
latest update doesn't pack in the good times we were hoping for
.

Back to investing and the stock at hand, Sony Corp. (NYSE:SNE) --  the analysts have yet to weigh in on the recent developments with the PSP and PS3 (not to mention the Sony Reader, competition for Amazon's Kindle).  The last time the analysts had anything new to say about SNE was way back in March:

20-Mar-09 Initiated Maxim Group Buy $25

However the problem with investing in Sony is you can't just bet on the PS3 and PSP momentum, you have to worry about all the other business divisions of the company, its the equivalent of a 'Technical General Electric'.  Sony is a conglomerate of audio, video, televisions, semiconductors, electronic doo-dads, and everything else that is labeled 'Sony'.  Don't forget you have to be concerned about how the Yen is trading to the Dollar, oh fun is fun.  Just look at Sony's latest org chart that is made up of some 170,000+ employees:

 

However, should SNE shares keep creeping lower, the Masters will even pick up a few shares.  The ideal entry point is $24 for SNE shares, best of luck to all playing the stock, let's hope the PS3 and PSP can help the bottom line.

 

Disclaimer: No positions in any of the securities mentioned in this publication.