Will the PSP make or break Sony?
The short answer: no. But it's important to note that Sony is depending on the PSP to boost its electronics division, which accounts for 65% of the company's sales. It's no secret that Sony's stock has fallen by 73% since it peaked in 2000, and now, the electronics division is poised to record another year of operating losses. Sony is really banking on the PSP's multimedia functionality, so that it can attract "non-gamers" and also make use of its film and music divisions. The company is in the process of boosting its production of the handheld, promising to churn out 2 million units monthly to meet projected demand—this would be more than double the current rate of 800,000. But the big question remains: will non-gamers buy the PSP?