Sony Corp. agreed to form two ventures with Shanghai Oriental Pearl (Group) Co. to start making and selling PlayStation gaming consoles in China as competition with Microsoft Corp. intensifies.
Sony will have a 70 percent stake in one venture and 49 percent in the other, according to a statement filed with the Shanghai Stock Exchange. Microsoft and BesTV New Media Co., a subsidiary of Shanghai Media Group, formed a $79 million gaming venture in September to reach Chinese consumers.
Video-game console makers are expanding in China after authorities in January ended a ban on the players in place since 2000. China’s video-game industry will generate about $10 billion in sales next year, according to PricewaterhouseCoopers LLP.
“Sony entering the China market can broaden sales,” Ryosuke Katsura, an analyst at UBS AG based in Tokyo said by phone. “PlayStation 4’s online game network service can help the company avoid piracy issues that are more prevalent with packaged games.”
Sony rose 2 percent to 1,665 yen at 9:08 a.m. in Tokyo trading. The shares are down 8.7 percent this year, compared with the 8.6 percent drop on the Topix index. (Bloomberg)
