Sony has finally made an entry into the European PC market with the launch of its VAIO line of laptop PCs in Europe. But before it has even sold a PC in Europe, Sony’s Information Technology division president Kunitake Ando admitted that its US desktop line has hit problems after only two years. Sony has found it difficult to compete with sub-$1,000 PCs and says that the company is reviewing the viability of its desktop line, and wants to avoid a situation where it flushes money away. Therefore for the moment Sony is to focus on carving out a niche in the laptop market, with devices marketed at small businesses and power consumers. The company launched its VAIO line of PCs in the US two years ago, in Japan last July, and now is taking them to Europe. The VAIO range, which stands for Video Audio Integrated Operation, for Sony represents a significant breakthrough with the convergence of video audio and computer technologies, but the notebooks are to standard, using 233 MHz Pentium MMX processors bundled with Windows 98 software. The key difference, according to Sony, is that the PC’s are designed to communicate with consumer electronics devices through an IEEE 1394 interface- previously called Firewire when developed by Sony and Apple – now called I-Link by the Japanese consumer electronics companies. Sony says that its ten divisions have all committed to making products ‘VAIO’ compatible and should be launching products from the autumn, into the Japanese market, with international releases following later. The PCs come bundled with Sony Digital Video and Audio editing software. Unfortunately Sony is not deviating from the standard practice of hiking PC prices in Europe way above those of the US. Sony UK manager said the 505 mini-notebook should retail at around 2,500 pounds ($4,000), while the US version with fewer bundled extras, is being launched for $2,000. Sony plans to ship two ranges in Europe: the 700 range, for 1,600 pounds and which will compete in the normal notebook class; and the 500 mini-notebook, that Sony says since launch in Japan last year have become a fashion item, and captured a significant slice of the sub-notebook sector. á