http://www.bloomberg.com/apps/news?pid=20601101&sid=aZSnTAtH6YZs&refer=japan

By Michael White

Oct. 26 (Bloomberg) -- Sony Corp., the world's biggest maker of video-game consoles, will introduce a new PlayStation 2 for the holidays to take advantage of the continued popularity of the older machine.

A white version of the PS2, with the ``SingStar Pop'' game and two microphones, will sell for $149.99, the company said today in a statement. The console will reach stores in early November, Sony said, without providing an exact date.

Sony is capitalizing on PlayStation 2's appeal as a low- priced alternative to Nintendo Co.'s Wii and Microsoft Corp.'s Xbox 360. The PS2 ranked third behind those consoles in September with sales of 215,000 units. Tokyo-based Sony's newest console, PlayStation 3, was fourth with 119,400. Xbox 360 was No. 1 with 527,800, followed by Wii with 501,000.

``If they're profitable on the PS2, as we think they are, it takes a little of the loss away on the PS3,'' said analyst Mike Hickey, who follows video-game publishers for Janco Partners in Greenwood Village, Colorado.

The company said in Japan yesterday that the loss at the games unit more than doubled to 96.7 billion yen ($846.7 million) in the quarter ended Sept. 30.

Sony cut the price of the PlayStation 3 to $499 last month and said it plans to introduce a less-expensive $399 model on Nov. 2 to spark holiday sales.

The company has sold more than 120 million PlayStation 2s worldwide since the console was introduced seven years ago. More than 1,500 games have been published for the console and another 160 will be introduced during the holiday season and during the first quarter of 2008, Sony said.

``SingStar'' allows one or two players to sing along to rock 'n' roll videos. Singers are graded on their vocal ability.

Sony American depositary receipts rose $1.09 to $49.07 at 3:59 p.m. in New York Stock Exchange composite trading. They have gained 15 percent this year.

I am perfect!!!

This old...its for $149.99.

Are there ANY significant PS2 releases on the horizon? Any exclusive titles that will really sell?

they are going to have the wii rip off sports games this holiday season I think. Sony the great innovators.

Gah, I can understand the black microphones, but couldn't they have made the chords white? Oh well, not a big deal in the scheme of things and I won't be buying one either way. Just looks a bit off to me is all.

I think Sony wants to steal as many sales as possible from the 360 and the Wii... But as a side effect, they'll also help those consoles fight against the PS3.

Anything that can reduce Sony's massive losses on their gaming division is probably seen as a good thing, of course.

I don't know about the US, but the SingStar games are still dominating Australian charts (don't ask me why... we must love singing or something :P).

The games are selling so well in Australia, a bundle like this might LOSE Sony money. The PS2 & DS are bound to be the biggest sellers here this Xmas - easily. The Wii will do well as well - but it should be an easy third (rather than 2nd/1st).

DS > PS2 >> Wii > 360 > PS3 (something like that I think).

...or...

DS >> PS2 > Wii > 360 > PS3
(maybe more likely)

Actually... if anything, won't this hurt PS3 sales? I can imagine people owning a PS2 & 360, or a PS2 & Wii - but not buying a PS2, then buying a PS3? (maybe in the future...?).

Its not sony thats making it, its a 3rd party company.

I also mentioned that in my post ;)

To clarify, the last paragraph was from the perspective of Sony's management.