Japanese Tech Stock Weekly Summary

The following is excerpted from IRG's weekly stock report:

Media, Entertainment and Gaming

• Market sources indicate that Sony's (SNE) PlayStation 3 (PS3) console has hit 1 million unit sales in PAL regions, including the U.K. and the rest of Europe. Industry observers say the news is welcome news to Sony after reports showed that Nintendo's (NTDOY.PK) Wii console was outselling the PS3 by a 5:1 margin. The device has sold 1 million units in nine-and-half weeks following its launch in March, making it the more popular console than both the PlayStation and PlayStation 2.

• Tokyo Broadcasting System Inc., referring to its anti-takeover measure against Rakuten Inc., said it has consulted an advisory panel of experts whether it should counter the online shopping mall operator's move. Industry sources said directors of the major TV and radio station have adopted a resolution on the panel. The six-member panel will hear directly from Rakuten president about the purpose of his company's plan to raise its stake in TBS to a level above 20 percent from 19.8 percent at present. Sources said the panel will analyze the additional share acquisition plan for up to 90 days and decide whether to identify Rakuten as an aggressive acquirer that should be subjected to a poison pill. In 2005, In October 2005, Rakuten asked TBS to merge with it after acquiring a 15.4 percent stake in the broadcaster, with Rakuten’s move to merger as being based on the rationale that there would be merits in fusing TV broadcasting with Internet services.

• Konami (KNM), a Japanese software maker, revealed its plans to launch a skincare guide for use on Nintendo Co. Ltd.'s portable game gear DS. Konami said it is looking to giving beauty tips based on users' basal body temperature and hormone balance. The DS has two screens, opens like a book and allows gamers to control play with a stylus, instead of manipulating a keypad. Konami Digital Entertainment is Konami's game software unit.

• Nickelodeon announced that it has entered into an agreement with Sony Music Label Group and SONY BMG Commercial Music Group to jointly develop and finance TV and music projects over the next four years. The two companies said the agreement includes activities in areas like apparel and electronics. Nickelodeon is a division of Viacom Inc.'s MTV Networks.

Internet

• The Japanese web site Yahoo Music (YHOO) announced that it has entered into an alliance with Apple's (AAPL) iTunes music store enabling iPod users to download songs and other content. Under the offering, those who have Apple’s digital music players will now be able to search for musicians, tracks and albums on the Yahoo site. According to Yahoo Japan, it aims to provide broader content and functions. Since its introduction in 2001, Apple has sold more than 100 million iPods, with the device cornering about 75 percent of the global MP3 player market. Apple's online iTunes store sells digital music, podcasts, video and films. The decision is seen as easing as replacing Mora, a download service run by Sony-affiliated LabelGate. Mobile/Wireless

• Sony Ericsson announced its filing of a U.S. patent application for a mobile device with video game features although it stated that it not yet set to launch a phone based on its PlayStation Portable [PSP] video game brand. Earlier, Sony Ericsson said it did not count out the development of a device fitted with its own technology and that of Sony’s portable video game technology.

Hardware

• Sony Corp. released a statement indicating that the company sees its electronics sales growth outpacing the industry in the current fiscal year. The company attributes this growth to the continuing demand for big televisions and digital cameras, with a decline in component pricing expected to benefit profits. According to the president and CEO of Sony’s electronics arm, the company's electronics sales posted a 7 percent growth percent in the fiscal year that ended in March. The Japanese company holds an 18 percent share of consumer electronics sales in the U.S.

Information Technology

• Media sources indicate that Yahoo Japan Corp. will become the top shareholder in Telewave Inc., an IT services provider, when it has acquired a 20 percent stake in the firm for 3.7 billion yen (US$30.4 million). The deal is expected to take place next Wednesday. Telewave has been a sales agent for Yahoo Japan, signing up many businesses for the web portal operator's shopping mall and auction services.

Disclaimer: IRG is not responsible for the accuracy of the news compiled within this article, which is based on publicly available information.