Written by: Jennee Grace U. Rubrico, BusinessWorld Sub-Editor
Publication: GMA News under SciTech
Date published: January 11, 2007 at 7:07 PM

The unabated proliferation of counterfeit items is delaying the release of a new game console produced by Japanese consumer electronics firm Sony, a top official of the local unit said recently.

In an interview, Sony Philippines President Hiroaki Kobayashi said Sony PlayStation 3 (PS3), which has been a success in the gaming world and launched only in select markets worldwide, is not likely to debut in the Philippines soon.

"Software copyright is a big problem [in the Philippines]. We have no detailed plan on [PS3’s release as] yet," Mr. Kobayashi said.

He said the local unit is "still negotiating with head office on how to manage" software issues in the Philippines.

PS3 is Sony’s seventh-generation video game console and the third in the PlayStation series. It succeeds PlayStation and PlayStation 2 and competes mainly with Microsoft’s Xbox 360 and Nintendo’s Wii.

The software was released on Nov. 11, 2006 in Japan, and on Nov. 17, 2006 in the United States, Canada, Hong Kong and Taiwan. It is expected to be released in March in Europe and Australia.

The game console has a suggested retail price of HK$3,780 (P23,890 at P6.32:HK$1) for the HDD 60GB model and HK$3,180 (P20,097) for the HDD 20GB model.

A statement released by Business Software Alliance in August estimated that the industry lost P3.9 billion to counterfeits in 2005.

The group, an international association of the world’s leading software developers, earlier released a study which showed that as of 2004, Philippines software piracy rate was still among the highest in the region at 71%, down 1% from 2003.

"Losses due to software piracy increased to $69 million from $55 million [in 2003]," the group added.

Meanwhile, Mr. Kobayashi said the launch of Sony’s laptop and personal computer brand Vaio is also being delayed but this was due to technical support issues.

"We need strong customer service, and we are discussing how to do this in the Philippines," Mr. Kobayashi said.

Contrary to PS3, Mr. Kobayashi was more definite on Vaio’s launch this year.
Vaio stands for Video Audio Integrated Operation.

Officials earlier noted that Vaio is likely to enter the market given a significant demand for laptops. Laptop sales tripled in 2006.

Vaio, Sony’s sub-brand, is packaged as a mini-entertainment center in a PC. Items with the Vaio brand are currently imported from Hong Kong or Singapore, and do not form part of Sony Philippines’ product lineups, company officials said.

Sony Philippines expected to have grown revenues by 10% to 15% in 2006 after its strong first-half performance was weighed down by a weaker second half.

Mr. Kobayashi said the company posted a 30% growth in revenues for the first six months of the year.

However, the typhoons that hit the country affected sales of consumer electronics, he added.

Revenue growth was still driven by Sony’s LCD (liquid crystal diplay) television brand Bravia, as well as related products like high-definition DVD (digital versatile disc) cameras, he added.