| |

Sony 3Q Profits Down 50% on PS3

According to an article on financial site Bloomberg.com, Sony stands to lose 50% of 3rd quarter net profit from 2005 to 2006, largely as a result of PlayStation 3. “Losses from games probably drove net income down to 84.1 billion yen ($691 million) in the three months ended Dec. 31, from a record 168.9 billion yen a year earlier,” the article states. The article attributes this weaker performance to company CEO Howard Stringer’s inability to better respond to Nintendo’s Wii, which currently enjoys a 2-1 advantage in global sales. Despite the poor showing by Sony’s game division, the company “may still exceed its full-year profit target because of a weaker yen, sales of Bravia televisions and growth at its movie unit.”

”After botching the PS3’s debut with production delays and cutting the price to compete against cheaper Wii and Xbox players, Sony will probably lose 191.9 billion yen from games this fiscal year, compared with profit of 8.7 billion yen the previous year,” Bloomberg reports. The good news for both Sony and Nintendo is that Xbox 360 projections have fallen. “Microsoft last week cut its Xbox 360 forecasts and now expects to sell 12 million units by June 30, instead of 13 million to 15 million,” the article says.

Disclosure: We may earn a commission from links on this page