Sony’s quarterly profit slips on Playstation banana peel!
Sony’s most recent quarterly earnings
highlight what many analysts call the biggest single challenge now facing the
recovering Japanese electronics conglomerate: the shaky start of its
long-awaited PlayStation 3 game console.
Sony’s most recent quarterly earnings highlight what many analysts call the biggest single challenge now facing the recovering Japanese electronics conglomerate: the shaky start of its long-awaited PlayStation 3 game console.
The company blamed a large loss in its games division, despite rebounding sales of its bread-and-butter consumer electronics. The games division posted a quarterly operating loss of ¥54.2 billion, down from a ¥67.8 billion profit a year earlier.
The better results outside of game operations helped Sony beat analysts’ predictions that it would see net profit plunge by half in the most recent quarter. They also helped Sony raise its projected net profit for the current year, which ends March 31, to ¥110 billion, from its October forecast of ¥80 billion.
But before Sony can pull out of its long slump once and for all, it has to fix the problems in its high-profile game division.
I’ve worked for corporations that lopped-off VP’s over a 20% loss in profits from a flagship operation like Sony’s Games.
Posted: Wed - January 31, 2007 at 08:24 AM