Internet
ò Industry analysts note that social networking service, a members-only online community, has been rapidly gaining popularity in Japan, fueling competition among major Internet service providers. As an invitation from an existing member of an SNS site is usually required to join the site, members can chat with each other with a sense of security, which is often cited as the reason behind the popularity of these sites. Mixi Inc., the largest SNS website operator in Japan, has attracted some 5.7 million registered members since its launch two years ago and on September 15 it went public on the Tokyo Stock Exchange's Mothers market for startup firms. Mixi's profits mostly come from banner ad revenue on its SNS web site. Major companies such as Yahoo Japan Corp. and Rakuten Inc. have launched their own SNS sites, while KDDI Corp. has invested in SNS site operator Gree Inc., aiming to link its mobile phone business to the site.
Mobile/Wireless
ò NTT DoCoMo has become the first mobile operator to introduce a BlackBerry service in Japan. The country's largest mobile operator said it will initially provide Research In MotionÆs wireless devices to corporate customers together with the BlackBerry Enterprise Server, which offers firewalls, push e-mail and a data access solution. The operator also announced that it will roll out RIM handhelds and push e-mail/data access service to its 51 million GSM/GPRS and W-CDMA network subscribers soon. Separately, Taiwan Mobile, which has 6.1 million subscribers and is Taiwan's third largest operator, said it would become the first operator to start offering BlackBerry service in its home country later this month.
Media, Entertainment and Gaming
ò Sony Corp., the world's biggest maker of video-game players, will cut the price of its PlayStation 3 by 20% in Japan in response to complaints from consumers that the device cost twice as much as consoles from Microsoft and Nintendo. A top Sony official said the game player will retail for Ñ49,980 ($430) from November 11 and will have an HDMI connection that allows high-definition pictures. The company previously said it would sell a lower-end model for Ñ59,800 ($512), excluding tax. Sony is relying on the PlayStation 3 to revive a company that has lost half its market value in the past six years.
The price cut would still make the PlayStation 3 the most expensive player on the market. Microsoft this month said it will start selling a cheaper Xbox 360 in Japan for Ñ29,800 ($255), while Kyoto-based Nintendo is offering its Wii console for Ñ25,000 yen ($214).
Hardware
ò Matsushita Electric Industrial Co. will launch two Blu-ray DVD recorders in Japan on November 15, a move that is expected to intensify the competition for next generation DVD technologies. The Panasonic brand maker, which promotes the Blu-ray format in competition with the HD-DVD standard led by Toshiba, said it expected the two types of recorders to retail at about Ñ240,000 ($2,045) and Ñ300,000 ($2,556). Sony has earlier said it plans to launch a Blu-ray DVD recorder in the Japanese market by the end of the year, without specifying details. Toshiba become the first company to offer next-generation optical disc players in March when it deployed its HD-DVD players, while Samsung Electronics introduced the first Blu-ray player in June. At the core of both formats are blue lasers, which have a shorter wavelength than the red lasers used in current DVD players, allowing discs to store data at the higher densities needed for high-definition movies and television.
Semiconductors
ò Shin-Etsu Chemical, the world's largest silicon wafer maker, will invest about $1 billion to boost its production capacity of 300-mm silicon wafers by 43% to 1 million wafers per month by the autumn of 2007. Industry observers note that the move is expected to raise the ante with rival SUMCO Corp. Shin-Etsu said it will build two new domestic plants and expand production lines at its US plant and at one existing plant in Japan. Meanwhile, SUMCO has agreed to buy 51% of Komatsu Electronic Metals in a move that will bring it neck-and-neck with Shin-Etsu in terms of global market share. Gartner Dataquest expects annual demand for 300-mm wafers to reach 34.9 million wafers by 2008, nearly triple last year's figure. A Macquarie Securities analyst, however, warned that Shin-Etsu's move could still result in a supply glut and growing price competition. In 2005, Shin-Etsu controlled 31.7% of the world's wafer market, ahead of SUMCO's 22.1% and Komatsu Electronic's 8.7%, according to Gartner Dataquest.
¬ Haymarket Media Limited. All rights reserved.
