Matsushita to Keep Gaming Goods Distinct Jun 9, 2003

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Electronics maker Matsushita Electric Industrial Co. has no plans to develop new crossover gadgets that straddle video-game machines and electronic appliances, a senior official said late last week.

Kazuo Toda, senior managing director at Matsushita Electric Industrial Co., explained the firm's strategy for its Panasonic brand at a Tokyo showroom.

The Osaka-based company, which makes Panasonic-brand products, has adopted a different approach to that of longtime rival Sony Corp., which recently unveiled a PlayStation2 machine combining a DVD recorder and TV tuner with a game console.

"We think the demands are subtly different, so in our strategy we will develop them separately," said Kazuo Toda, adding that Matsushita's analysis suggests that games and entertainment don't really mix and that products trying to bridge the divide haven't sold well.

Matsushita launched a product in Japan in 2001 combining the Nintendo GameCube with a DVD player. But sales of the product, dubbed Q, have been slack.

In contrast, Sony appears to view its crossover console, known as the PSX, as a key part of its product strategy. The machine goes on sale in Japan this year and is scheduled to be released in the U.S. and Europe early next year. (The Associated Press)

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