Sony stock soars 5 percent after Blu-ray victory

Sony shares obviously performed well after Blu-ray was declared victorious in the HD movie war. According to Reuters, "U.S. shares of Sony Corp rose as much as 5 percent on Tuesday on optimism about sales of its PlayStation 3 video game consoles and Blu-ray DVD players." While many are quick to note that game consoles should be about games, investors are seeing things a different way. They see Sony's all-encompassing approach to media as one that will really drive their business forward.

"We believe Blu-ray's victory could drive market share gains for the PS3, as we believe consumers will now be more willing to pay up (versus 360) for the standard Blu-ray player," William Blair analyst Ralph Shackart wrote in a note to clients. The stocks managed to reach a high of $47.07 (although it fell down to $46.30 later on).

The Japanese electronics company has been struggling financially due to the high production costs of the PS3. However, with a Blu-ray victory secured, things are certainly looking forward for the company. Will you invest in their stock now, too?

[Via Joystiq]