Nov. 15 - The PlayStation 4 could be key to Sony's turnaround. Sony's going on the offensive by pricing it cheaper than Microsoft's Xbox One. Fred Katayama reports.
Hundreds of gamers lined up in New York City to buy Sony's PlayStation 4 on its debut. The videogame console could be key to Sony's turnaround. The Japanese electronics giant went on the offensive, launching it one week before rival Microsoft's Xbox One and pricing it $100 cheaper. Anticipation is high because it's the first major upgrade in years for both products. Sony's new console boasts more realistic graphics than its predecessor, faster processors, and ability to share game experiences on social networks. The stakes are particularly high for PS4 and its struggling maker. Last month, Sony shocked investors with an operating loss, and it cut its profit forecast for the year. The launch comes amidst slow sales for an industry that now also competes against smartphones, tablets, and social networks like Facebook and Zynga. Sony has also come under pressure from activist investor Dan Loeb. It has rejected his call to spin off its underperforming entertainment division. Sony says it has received more than 1 million advance orders for PS4. It aims to sell 5 million of them by March. Microsoft will only say that it has received more orders than its predecessor. The PS4 has had generally positive reviews. And a Reuters poll this fall showed more U.S. shoppers prefer PS4 to Xbox One.