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Sony Corp (ADR) (SNE) Launching PS4 In China: Whats The Risk?

Sony Corp (ADR) (NYSE:SNE) has finally made its PS4 available in China. This is a big move from Sony Corp (ADR) (NYSE:SNE) in order to expand it further in China. But, there might be some pitfalls to this move though. Ajay Sunder, Senior Director at Frost and Sullivan talked on CNBC about the sales of PS4 in China and also warns about the risks from the availability of limited games.

Playstation 4

Sunder pointed out that Sony Corp (ADR) (NYSE:SNE)’s has done very well globally when compared to competitors like Xbox one. He added that Sony Corp (ADR) (NYSE:SNE) has sold more than 20 million units of PS4 around the world and they have the momentum with them into China when compared to the competitors who managed to sell around 11 million units. He pointed out that Sony Corp (ADR) (NYSE:SNE) is planning to release only 6 titles, which might be a little riskier for a market like China.

Whenever some foreign company tries to enter Chinese market, Chinese authorities try to encourage the growth of a local company as in smartphones and other devices. But are there any such local Chinese competitors in the gaming console space?

“There are likes of the Chinese vendors. […] Xiaomi sometime back announced their intent to look at gaming industry. So that could be one reason and apart from that China content regulation have been outdated and they have not modified that for long, so that still remains on the key constraints,” Sunder said.

He added that the regulations could delay some of the PS4 titles entering into China, which he feels might disinterest the customers in the current scenario.

Disclosure: None

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