Sony Game Division Expected to Post $1 Billion Loss on PS3

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It appears that the PlayStation 3 may be causing Sony to hemorrhage money. Lots of money. According to Bloomberg.com, the company is set to post their biggest loss in four years. The net loss for the Japanese electronics giant is expected to reach as high as $630 million for the first three months of 2007 alone, ending March 31. The game division, which has traditionally been one of the most profitable divisions within the company, is offsetting sales of the Bravia HDTV and a strong performance by Spider-Man 3 at the box office. Sony’s game division will post a loss of $1 billion in the quarter.

“By comparison, Kyoto-based Nintendo last month reported profit in the company’s latest quarter jumped sevenfold on sales of Wii consoles and portable DS game players. The company expects to sell 14 million Wii units this fiscal year, more than double the number sold in the previous year it was introduced,” the article says. It goes on to say that, “Sony sold 501,000 PlayStation 3 consoles in the U.S. from January to March, compared with Wii sales of 1.03 million, according to market researcher NPD Group Inc., based in Port Washington, New York. Microsoft sold 721,000 Xbox 360 players.”

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