Sales of Sony Corp.'s Vaio personal computer, which was a hit when introduced in fiscal 1997, have fallen off, with shipments in fiscal 2002 plunging below the previous year's levels for the first time.

"Sales used to be good, but now we are at a crossroads," Sony Chairman Nobuyuki Idei said.

Sony put a new Vaio model on the market on May 24 in a bid to revive sales, but industry analysts are not giving it high marks.