random 30 Jan 2007 09:25 pm
Sonys earnings hit by battery, gaming woes
Sonys earnings hit by battery, gaming woes
The third quarter of fiscal year 2006 was a rough one for Sony, just as the company had warned. Overall, Sony saw earnings of ¥159.9 billion $1.31 billion on revenues of ¥2.607.7 trillion $21 billion. Although revenues were up over the same quarter last year ¥2.375 trillion, net income declined 5.3 percent from last years ¥168.9 billion $1.39 billion figure.
Sony laid the blame for the earnings shortfall primarily at the feet of Sony Computer Entertainment, the division responsible for consoles. SCE posted a ¥54.2 billion loss $443 million due to the costs associated with manufacturing and launching the PlayStation 3 along with lower sales of the PSP and price cuts on the PS2. Last year, SCE saw a ¥67.8 billion profit $556 million.
Sony reiterated that it would reach the 6-million mark for PlayStation 3 shipments by the end of the fiscal year on March 31. More importantly, the consumer electronics giant said that the PlayStation 3 would break even during the last half of fiscal year 2007.