Sony game unit says should hit PS3 target

By Kiyoshi Takenaka

CHIBA, Japan (Reuters) - Sony Corp's videogame unit said it was fairly confident of doubling shipments of PlayStation 3 game consoles to 11 million in the year to March, and may buy more software firms to boost demand for its console.

Sony Computer Entertainment (SCE) said earlier it had acquired British software developer Evolution Studios and its subsidiary, Bigbig Studios, for an undisclosed sum to strengthen its software lineup. Evolution created "MotorStorm", a million-seller title for the PS3.

SCE Chief Executive Kazuo Hirai also told Reuters in an interview that his firm may buy more software companies to create titles and stir up demand for the PS3, which has struggled since its launch late last year as rival Nintendo Co Ltd's Wii has roared ahead.

Sony had ruled the $30 billion global game industry for about a decade from the mid-1990s with its PlayStation and PlayStation 2 but it was a year behind Microsoft Corp in releasing its latest console.

A high price for the PS3 and a lack of hit games has also hurt the PS3 in its battle with Nintendo.

"We are planning various steps to support our software and hardware businesses ... I think we can do pretty good in terms of the target," Hirai said, when asked about an aim to double the 5.5 million units PS3s shipped the previous year.

He said the game division may buy other software developers.

"We wouldn't buy a company just because we can," said Hirai, who this year replaced Ken Kutaragi, known as the "Father of the PlayStation," as head of Sony's game division.

"Talks of an acquisition would emerge only when a company already has tight relations with us, its corporate culture is compatible with ours, its employees are working closely with us, and it can churn out strong software titles."

Hirai said in his keynote speech at the Tokyo Game Show 2007 on Thursday that SCE would postpone the launch of the "Home" virtual community service for the PS3 to early next year, the latest setback in its battle with Microsoft and Nintendo.

The 3D "Home" online service, in which players can create and "own" characters and content, was originally scheduled for launch this autumn. Hirai said the company was postponing the launch to improve product quality.

Ahead of Hirai's comments, shares in Sony closed down 0.9 percent, underperforming the Tokyo stock market's electrical machinery index, which fell 0.5 percent.