Sony Corp (ADR)(NYSE:SNE) has called off the production of PlayStation 3 in its home country, Japan. The goodbye news was posted on the Japanese PlayStation website and it comes after almost a decade of the company’s production operations of the device. Information on the website revealed that shipments for the console have “ended” and only the 500GB version was still being manufactured. Nonetheless, its production would also cease soon.
The console, which was first launched in November 2006 has been the dominant console in the West and has also been doing well in Japan. For the last 10 years, it has received massive support from Sony before the entry of Microsoft’s Xbox 360, which gave it stiff competition. Records are that it sold to date close to 80 million.
The market has had a mixed reaction over Sony’s intention to cease production of PS3. However, this may not be a surprise to those who can remember the company’s previous indicative warning. In March, Sony stated shipments were scheduled to end soon. On the other hand, during its launch in 2006, the company outlined that it was only offering 10-year support to a handful of devices including PS Vita and PS3.
So what next for Sony?
The PS3 had been sold at a loss for years amidst heavy criticism over its price. As a result, the company suffered large operating losses in 2007 and don’t forget the device had started off at a slower pace than its predecessor, the PlayStation 2. Nonetheless, the launch of the PS3 Slim in 2010 gave some repreive.
Meanwhile, there are lots of ranging speculations over Sony’s next moves. The company is reportedly set to launch the next-generation PlayStation, which is likely to be launched in the second half of 2018. Other reports indicate that it will be shipping close to 18 million units of PS4. Having sold about 60 million, it is set to take over PS3.
Meanwhile, Sony stock closed at $36.68 witnessing an increase of $0.51 or 1.41%.