Sony To Sell Insurance IPO To Fund PS3 Price Cut?

insurance_caveman.jpgAnalysts Michael Pachter and Jesse Divnitch aren't the only industry folk predicting another PLAYSTATION 3 price cut. Mitsuhiro Osawa, analyst at Mizuho Investors Securities Co. says Sony may be considering a price cut as one of its options, a move to be funded by a $US2.9 billion dollar initial public offering. According to Bloomberg, Osawa says Sony Corp. could (for emphasis—could) turn this insurance unit IPO into an infusion of cold hard yen into its electronics and games businesses.Bloomberg theorises that these funds could help increase production of Sony's successful Bravia television series as well as help turn around the unprofitable PlayStation business. With the Wii outselling the PS3 three-to-one in August in Japan and the console trailing Nintendo and Microsoft's hardware sales in North America, it certainly wouldn't hurt a few units shifting.

Let's just hope that if Sony does issue a price cut in the States, that it's a little less foggy in its execution this time.

Sony to Raise 332 Billion Yen in Insurance Unit IPO [Bloomberg]


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