Sony Posts Profit, Gaming Loss Widens
Sony returned to profitability in its fiscal second quarter thanks to a weaker yen and strong digital camera sales, however its gaming and TV divisions -- including the PlayStation 3 -- continued to struggle.
The Japanese electronics company posted revenues of 2.08 trillion yen, up 12.3 percent from the year ago quarter. Operating profit came in at 90.5 billion yen, up sharply from the 20.8 billion yen loss Sony posted last year due to the battery recall and PS3 launch costs.
Net profits shot up to 73.7 billion yen from 1.7 billion yen in the year ago quarter. The company said that as much as 30.3 billion yen of its profits could have been due to the weak yen alone, as sales in other parts of the world became more valuable.
Sony's electronics division showed the most strength, with an operating profit of 106.9 billion yen, up from 8 billion yen last year. However, losses in the manufacturer's television unit grew to 21 billion yen from 10 billion last year.
Sony's gaming division also saw expanding losses, with a 96.7 billion yen loss more than doubling last year's 43.5 billion yen figure. The company said it was not sure how big the loss would be for the entire year as of yet, but it's unlikely the situation will improve anytime soon.
1.31 million PS3's were shipped during the quarter, up from 710,000 units in the first quarter. Apparently, the consoles are still being sold at a loss, thus a recent PS3 price drop could have the unfortunate effect of worsening the gaming division's financial situation.
Price cuts on the PS3 have already been announced in Europe, Asia, and the United States within the past month.