Analysts: PS3 to help boost Sony’s profits
The Nikkei Business Daily has reported certain predictions regarding the financial effect of the PS3 and LCD TV sales on Sony, and the forecasts are looking really good. By good, we mean a fivefold jump of the company’s operation profits. This brings up its OP to Â¥ 400 billion or US$ 3.36 billion.
It is expected that Sony’s group sales will be climbing by 6% to Â¥ 8.7 trillion by March 2008. This conclusion was based on a consensus forecast of analysts gathered by Nikkei’s financial information service Quick.
While the strong sales of LCD TVs played a part in this expected rise, they have specifically mentioned the PlayStation 3 (PS3) because it is by far the biggest earner in the equation this year. PlayStation 3 shipments are expected to go up by about 67% to 10 million units from 2007 to 2008. This was majorly affected by IBM’s reduction of chip cost production and the improvements in production efficiency.
Last year’s launch of the console hit the company’s books real hard with operating losses of around Â¥ 200 billion, profits were also hurt by the battery recall issue which was said to have lowered the company’s operating profit by about US$ 432 million.
If the analysts’ predictions hold true, then Sony will be on the fast track to making back the money it lost with a hefty profit to boot.
The Nikkei Business Daily has reported certain predictions regarding the financial effect of the PS3 and LCD TV sales on Sony, and the forecasts are looking really good. By good, we mean a fivefold jump of the company’s operation profits. This brings up its OP to Â¥ 400 billion or US$ 3.36 billion.
It is expected that Sony’s group sales will be climbing by 6% to Â¥ 8.7 trillion by March 2008. This conclusion was based on a consensus forecast of analysts gathered by Nikkei’s financial information service Quick.
While the strong sales of LCD TVs played a part in this expected rise, they have specifically mentioned the PlayStation 3 (PS3) because it is by far the biggest earner in the equation this year. PlayStation 3 shipments are expected to go up by about 67% to 10 million units from 2007 to 2008. This was majorly affected by IBM’s reduction of chip cost production and the improvements in production efficiency.
Last year’s launch of the console hit the company’s books real hard with operating losses of around Â¥ 200 billion, profits were also hurt by the battery recall issue which was said to have lowered the company’s operating profit by about US$ 432 million.
If the analysts’ predictions hold true, then Sony will be on the fast track to making back the money it lost with a hefty profit to boot.