Playstation 3 (PS3) News

Games sector is weak - Sony CFO

posted by rohit at 2006-10-27 14:08:58 gamesindustry.biz Sony's chief financial officer, Nobuyuki Oneda, has warned that the games sector "is weak" and presents "a major challenge" after the company posted a drop in profit of more than 90 per cent.

During Q2, Sony's profits fell from YEN 28.5 billion (EUR 190 million) to YEN 1.7 billion (EUR 11 million) - with the loss attributed to costs incurred by a laptop battery recall and PS3 development.

The games division made a YEN 43.5 billion (EUR 289 million) loss, attributed to the investment required for manufacturing, marketing and research costs for the PS3. Sales and operating revenues also fell by more than 20 per cent to hit YEN 170 billion (EUR 1.13 billion).

Although sales for the Sony group rose by 8 per cent to YEN 1.85 trillion (EUR 12.3 billion), attributed to an increase in demand for flatscreen TVs, the company incurred costs of YEN 51 billion (EUR 339 million) due to the global recall of 9.6 million notebook batteries. Read More...