Ben-DutkaFollowing the cancellation of Toshiba's HD-DVD format , US shares of Sony rose as much as 5% on Tuesday, thanks to newfound optimism regarding future sales of the Blu-Ray-enabled PlayStation 3. (source- Reuters)
"We believe Blu-ray's victory could drive market share gains for the PS3, as we believe consumers will now be more willing to pay up (versus 360) for the standard Blu-ray player," William Blair analyst Ralph Shackart wrote in a note to clients.
At this time last year, Sony and the PS3 weren't in an enviable position, but times have changed. US Sony shares rose to a session high of $47.07 on the New York Stock Exchange before settling to $46.30, which is up $1.52 or 3.4% from Friday's closing numbers. Analysts attribute this rise almost entirely to the cessation of HD-DVD production, and the PS3 is bound to benefit from this significant turn of events. Blu-Ray didn't end up being another Betamax, because this time, Sony got it right. Earlier yesterday, Sony shares in Tokyo were up 2.2%, and this should only be the beginning.
The effects of the Blu-Ray victory should be reflected in the strength of both Sony shares and PS3 sales further on down the road. In other words, Sony has started to roll in 2008.
