Sony Posts Major Financial Year Losses

Sony has posted a 68% fall in operating profits for the financial year primarily due to large losses in its games division. It also reported its largest quarterly losses in four years.

Sony announced operating profit of 71.75 billion yen ($596.8 million) for the year ended March 31, down from 226.42 billion yen ($1.88 billion) a year earlier.

The poor financial results stem mainly from the huge costs associated with the launch of the PlayStation 3, and specifically the company's decision to sell the console at a large loss per unit. According to Sony's annual report, "In the Game segment, there was a significant operating loss as a result of the sale of PS3 at strategic price points lower than its production cost during the introductory period." Sales of the console have not been overwhelming either - it has been outsold by Nintendo's Wii by two to one since its release in November 2006.

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Observer4480d ago

begun have the flame wars !

rusgreim4480d ago

...going to get any better this holiday season when competing with the jugernaut that is Halo 3. After the H3 billboard, television, and movie trailer campaign, the PS3 will be the ultimate butt of every gamers joke. Think Dreamcast.

I can't wait to see all the fanboys point and say "but we have MGS4 and FFXIII coming out..... sometime."

Bwa ha ha!!!

And for the record, before anyone says it, it doesn't matter if H3 is overblown or overhyped of failes to live up to expectations, 6-8 million people will be buying it and playing it. Thats all that matters. People are still playing H2 online, 2.5 years later. Show me a PS2 game people are still playing online.... oh wait....

LSDARBY4480d ago

Get a grip on reality pal

bootsielon4480d ago

FFXI is still played on PS2s after 5 years, you Moron.

And by the way, Halo is not the end all be all of gaming. It'll shift 360s, but that's not the only thing people want. Not everyone is a hardcore FP shooter fan.

shikwan4480d ago

Price cuts for the PS3 just ain't gonna happen! To bad, so sad, don't be mad...PS3 a fad? Ken Kutaragi yo' dad?

Capt CHAOS4480d ago

Too much something coarsing through your veins... Very funny!

solidt124480d ago

This just means that next year they will have record growth.

rusgreim4480d ago

Keep telling yourself that... maybe it'll come true!

Boink4480d ago

sony stated they do not expect to see profits from the ps3 till 2010/2011.

Xi4480d ago

is that because it cant get any worse?

BrainDead4480d ago (Edited 4480d ago )

Im a gamer. Not a sad fanboy.

gta_cb4479d ago

omg someone disagreed!
so does this mean you are?

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