SONY TID-BITS
June 2, 2000

Sony's been busy lately. The company has made a few moves that indicate the direction in which it's headed.

First, Playstation 2 chip production will be boosted to the tune of 125 billion yen ($1.11 billion), doubling the company's initial investment of 130 billion yen. This will allow the company to produce systems even faster than previously expected, though intentional shortages are still to be expected for the first few months of availability in North America. The company expects to be able to more than quadruple current PS2 production by next spring.

Second, as part of this investment, Sony will begin selling chips to competitors (to be named later) to be used in digital televisions and other entertainment devices. The point of this move is two-fold. 1) It will allow the technology to be more widespread and accepted. 2) It will help the company to make up for heavy investment costs involved in creating the chips initially.

Lastly, Sony's Indian unit is eyeing companies that will give it an internet presence in that country. This further establishes Sony's newfound interest in the internet, as evidenced by its broadband PS2 strategy.