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Wednesday, October 05, 2005

Sony's Stringer banks on cell, content for growth

Sony's Stringer banks on cell, content for growth

"CEO Stringer says 'cell' chip that powers different
devices is part of company's growth strategy.

Sony Corp. Chief Executive Howard Stringer said Tuesday he is pushing forward with a growth strategy that revolves around its powerful "cell" chip as well as leveraging content to drive electronics sales.

Sony has watched its fortunes fade in the consumer electronics market in recent years. The inventor of the Walkman has been unable to keep up with low-cost rivals and has failed to come up with hit products as it did so consistently in the past.

But Stringer said Sony can still be revived if its engineers work more closely together across product lines to develop "champion products" that can't be easily copied by low-cost Chinese and South Korean manufacturers.

In a speech at an electronics trade show, Stringer said cell, a so-called "supercomputer on a chip" that was jointly developed with Toshiba Corp and IBM (Research), will play a key role in adding value to its products.

Sony plans to first use cell in the PlayStation 3 (PS3), its next-generation game console due next spring. The company has established a development team to find other applications for the chip such as in home servers and flat TVs.

"The PS3 is only the beginning for cell," Stringer said in a speech at CEATEC Japan in Makuhari, near Tokyo. "New intelligent devices will be powered my smaller and more powerful processors and will be directly connected with one another."" [more]

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