Sony Trims Annual Loss Projections
Losses for past quarter smaller than expected, company readjusts forecast.
Sony's financial figures for this past quarter are in, and the results are better than expected for the PlayStation maker. It suffered a 26.3 billion yen (£174 million) quarterly loss, but this was smaller than originally predicted. The initial projection for the fiscal year was a 120 billion yen loss, but this past quarter's performance has allowed Sony to adjust that to 'only' a 95 billion yen (£630 million) loss.
So what were the game-changers? Recent manufacturing cost-cutting measures and impressive sales of a revitalised PS3 worldwide have helped Sony edge towards recovery. The unfortunate death of Michael Jackson has also resulted in a surge of interest in his back catalogue and post-humous CD and film releases, which couldn't have been a bad thing either.
All this comes despite the strengthening of the Japanese Yen (which has been a significant problem for companies like Nintendo recently) and Sony's reduction of consumer prices for its cameras and other gadgets. The former, which lowers earnings from overseas sales, wiped out 77 billion yen of operating profit, while the latter has been due to a lack of a must-have consumer electronic item like the iPod.
Reconfiguration of the way Sony is organised makes year-on-year figures for PlayStation revenues difficult to evaluate since the games division has been folded in to the Networked Products & Services division in the last 12 months. But the report does note that Q2 PS3 sales were up to 3.2 million units, from 2.4 in the previous year.
So what were the game-changers? Recent manufacturing cost-cutting measures and impressive sales of a revitalised PS3 worldwide have helped Sony edge towards recovery. The unfortunate death of Michael Jackson has also resulted in a surge of interest in his back catalogue and post-humous CD and film releases, which couldn't have been a bad thing either.
All this comes despite the strengthening of the Japanese Yen (which has been a significant problem for companies like Nintendo recently) and Sony's reduction of consumer prices for its cameras and other gadgets. The former, which lowers earnings from overseas sales, wiped out 77 billion yen of operating profit, while the latter has been due to a lack of a must-have consumer electronic item like the iPod.
Reconfiguration of the way Sony is organised makes year-on-year figures for PlayStation revenues difficult to evaluate since the games division has been folded in to the Networked Products & Services division in the last 12 months. But the report does note that Q2 PS3 sales were up to 3.2 million units, from 2.4 in the previous year.
Companies:
Sony
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