Sony reports profits despite losses on PS3

Despite the many reported losses that the games division of Sony is reportedly getting due to the less than dominant performance of the PlayStation 3 so far, it is surprising to hear that the company still predicts profits for the fiscal year.

The company as a whole forecasts a record profit for the fiscal year through March 2008 at US$ 2.7 billion. This profit is attributed to booming sales of flat-panel TVs and digital cameras.

So when can we expect the games division to recover?

According to an Associated Press report by Yuri Kageyama, a Sony executive said that Sony will lose about US$ 413 million in this fiscal year, and recovery from the losses won’t come until the arrival of more games to play on the PlayStation 3. Senior Vice President Takao Yuhara said that what’s most important for Sony right now is software.

Yuhara declares: “In every region, our software lineup will be strengthened.”

Great. So yet another executive/analyst/company spokesperson says that the PS3 needs more games. That’s certainly something we haven’t heard before?

However, given that the company reports that they’re still foreseeing a massive influx of profits, especially from their HD TVs, perhaps their High Definition strategy for the “Next Generation” is more on track than others have thought.

Despite the many reported losses that the games division of Sony is reportedly getting due to the less than dominant performance of the PlayStation 3 so far, it is surprising to hear that the company still predicts profits for the fiscal year.

The company as a whole forecasts a record profit for the fiscal year through March 2008 at US$ 2.7 billion. This profit is attributed to booming sales of flat-panel TVs and digital cameras.

So when can we expect the games division to recover?

According to an Associated Press report by Yuri Kageyama, a Sony executive said that Sony will lose about US$ 413 million in this fiscal year, and recovery from the losses won’t come until the arrival of more games to play on the PlayStation 3. Senior Vice President Takao Yuhara said that what’s most important for Sony right now is software.

Yuhara declares: “In every region, our software lineup will be strengthened.”

Great. So yet another executive/analyst/company spokesperson says that the PS3 needs more games. That’s certainly something we haven’t heard before?

However, given that the company reports that they’re still foreseeing a massive influx of profits, especially from their HD TVs, perhaps their High Definition strategy for the “Next Generation” is more on track than others have thought.