Sony: We Might Have Best Holiday Ever

Sony believes that it may be about to have its best holiday season ever in the United States as it is seeing strong demand for TVs, cameras, and computers.

Fears of an uncertain market seem to be unfounded at least for now as American consumers continue to scoop up consumer electronics at a steady clip. In the wake of the sub-prime lending fallout, many manufacturers of consumer goods have feared that consumers would begin to stop spending.

Part of the reason why Sony is doing well is that it has become more competitive in price. For example, the company has begun to move some of its TV models to below the $1,500-price point, where most consumers can afford. However, it still plans to focus on the higher end of the market -- sets that are 50" and larger.

The same goes for computers. While it will stay out of the budget computer market, the $1,000 average price of its laptops is much closer to the $800 average overall for the market. The main focus going ahead will be notebook models with price points around $1,200 or $1,300.

Such moves are necessary. In an increasingly price-conscious society fueled by discount retailers like Target and Wal-Mart, Sony began to lose market share. Thus, the company had to change its ways or risk being left behind in this new market.

It is facing a similar situation now vis a vis Blu-ray. While the company enjoyed much success throughout the first three-quarters of this year, selling more software and catching up in the hardware department, lately HD DVD has stolen much of Sony's thunder.

Recently, players were sold for as little as $99 USD, some $300 cheaper than the least expensive Blu-ray model. Again, the company must then make the decision whether to stick to its guns on price or begin to compete with its rival.

Sony also did not mention the PlayStation 3 as part of its resurgence in the holiday season. This is probably due to the fact that the gaming system is still struggling to build a solid game library which will likely take until after the holiday season is over.

However, even there Sony has acquiesced to its competitors, releasing a budget system for $399 to quell complaints about its high price.

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