Sony Corp. (6758) plans to start packaging new video game consoles for the China market from December as it seeks to win sales in the world’s most populous nation after the end of a 14-year ban on machines.
Sony’s venture for China intends to package 200,000 consoles annually, according to a filing on the website of the China (Shanghai) Pilot Free Trade Zone. Masaki Tsukakoshi, a Tokyo-based spokeswoman for Sony Computer Entertainment Inc., confirmed the document’s authenticity and said actual production amounts may differ.
Gaming is one of the few bright spots for Sony, which is headed for its sixth annual loss in seven years despite selling more than 10 million units of its PlayStation 4 console. Microsoft Corp. (MSFT) has already started selling its Xbox One in China with a limited range of titles because of government restrictions.
Sony said it agreed to form two ventures with Shanghai Oriental Pearl Group Co. (600832) to start making and selling consoles after China lifted its ban, according to the China partner’s filing in May. Sony will have a 70 percent stake in one venture for hardware production and 49 percent in the other for software sales and networks.
“We have not disclosed the launch date in China yet,” Sony’s Tsukakoshi said.
Photographer: Chris Ratcliffe/Bloomberg
Visitors play on Sony Playstation 4 video games consoles, produced by Sony Corp.
The filing was made in July and posted on the free trade zone website in August. It was approved by China’s State Environmental Protection Administration, according to the website, which didn’t disclose an approval date.
Last month, Tokyo-based Sony said it would report a wider full-year loss of 230 billion yen ($2.1 billion) as it writes down the value of its faltering smartphone business.
The 180 billion-yen charge limits options for Chief Executive Officer Kazuo Hirai, who has been working to revive Sony by emphasizing entertainment, consoles and mobile devices as demand for TVs and cameras declines.
Sony plans to boost cloud-based gaming by creating a mass-market streaming service similar to Netflix Inc. The PlayStation Network has more than 50 million active users and its PlayStation Now service is available in North America for streaming content on Sony devices including Bravia TVs.
To contact the reporters on this story: Grace Huang in Tokyo at xhuang66@bloomberg.net; Yuji Nakamura in Tokyo at ynakamura56@bloomberg.net
To contact the editors responsible for this story: Michael Tighe at mtighe4@bloomberg.net Robert Fenner, Aaron Clark
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