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Sony to Carry Smaller Memory Stick

Downsized version of consumer memory device will debut in 2001.

By Reuters   

The Japanese electronics giant said on Thursday it would launch a smaller version of its Memory Stick data storage device in the first quarter of 2001, hitting back at growing competition in the memory device market.

With the new version, Sony wants to widen the use of the sticks as a memory storage device for video camcorders, digital cameras, and personal computers that can be connected via a digital home network.

The world's second-largest consumer electronics maker is now facing a threat from a rival small memory device called the SD memory card, used by a group led by Matsushita, Toshiba, and SanDisc.

Sony has been actively building up the number of firms licensed to develop gadgets using its Memory Stick.

By late February, 44 firms were licensed to develop and make hardware devices using Memory Sticks. It has also licensed two firms, including Fujitsu, to make the Memory Stick.

By increasing the number of allies, Sony wants to avoid a repetition of its Betamax fiasco. Sony developed Betamax as a rival to the VHS video format. VHS has come to dominate the global market for home videotape players and cameras after Sony failed to promote Betamax, which is considered to be technologically superior, by licensing the technology to other manufacturers.