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Friday, November 21, 2008
Sony Expects Slow Holiday Blu-ray Sales

Blu-ray disc players may be on

Sales of the next-generation movies players, will not meet the worldwide target of 5 million units, most of which had been expected to sell in the United States, according to Stan Glasgow, chief operating officer of Sony Electronics Inc.,

"It's not that far off of it," Glasgow said in an interview with Reuters. "Maybe 10 percent off of what we had thought. It's truly one of the items that has performed well during this economic mess."

After the U.S. Thanksgiving holiday on November 27, electronics retailers are expected to slash prices of Blu-ray players -- which originally sold for as high as $1,500 in 2006, -- to as low as $150 per unit.

Sales of Blu-ray players have also been hampered by retail prices on movie discs, which can top $30 a piece.

Glasgow suggested that discounted prices for movies could jump-start player sales.

Blu-ray still has a long way to go to match sales of standard DVD players. Although the segment is in decline, global DVD player and recorder sales reached 142 million units in 2007, according to research firm In-Stat.

The holiday shopping season is expected to be tough for the entire consumer electronics sector, including gadgets or flat panel, high definition televisions.

Still, Glasgow thinks that some companies like Sony, established multinational concerns with access to credit, will take advantage of developmental opportunities now that some of their competitors are struggling, in hopes of making more innovative products in the long run.

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