Sony reports biggest loss in four years on PS3 game consoles

Sony reports biggest loss in four years on PS3 game consoles
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First Published: Wed, May 16 2007. 12 35 PM IST
Updated: Wed, May 16 2007. 12 35 PM IST
Tokyo: Sony Corp., the world’s second-largest consumer electronics maker, reported its biggest loss in four years after the PlayStation 3 game console failed to spur as much demand as Nintendo Co.’s Wii player.
The net loss totaled 67.6 billion yen ($562 million) in the three months ended 31 March from 66.5 billion yen a year earlier, Tokyo-based Sony said in a statement on 16 May. The company posted a 111.1 billion yen loss in the quarter ended March 2003.
PlayStation 3 is being outsold by Wii by about two to one, causing a loss at Sony’s game division, its second-largest by revenue. The loss exceeded profits from electronics such as Bravia televisions, and the movie unit, whose “Spider-Man 3” generated record box-office sales when it opened this month.
“The extent of the recovery in the game business will be the main theme this fiscal year,” Naoki Fujiwara, who oversees $720 million at Shinkin Asset Management Co. in Tokyo, said before the earnings announcement.
For the year ending March 2008, Sony forecasts net income of 320 billion yen, more than double the 126.3 billion yen for the year just ended, on sales of its Bravia liquid-crystal display televisions and a narrower loss at the games division.
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First Published: Wed, May 16 2007. 12 35 PM IST