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Sony loses lots of money on PS3

Posted on Thursday, May 17 2007 @ 06:02:03 CEST by

Analysts predict Sony will announce its biggest loss in 4 years after the PlayStation 3 failed to spur high demand from consumers.
The net loss at Tokyo-based Sony may have widened to 75.8 billion yen ($630 million) in the fiscal fourth quarter ended March 31, from 66.5 billion yen a year earlier, according to the median estimate of 11 analysts surveyed by Bloomberg. Sales probably rose 9.5 percent to 2.02 trillion yen, the survey showed.

PlayStation 3 is being outsold by Wii by about two to one, causing Sony's game division, its second-largest by revenue, to post a fourth-quarter loss of 121 billion yen and a record 245 billion yen deficit for the fiscal year, according to five of the 11 analysts. The loss may exceed 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,'' said Naoki Fujiwara, who oversees $720 million at Shinkin Asset Management Co. in Tokyo.
Source: Bloomberg.



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