Sony Paying for PlayStation 3
Not just gamers' pockets to be hit by new system. Sony profits slump.
Howard Stringer modelling Sony's new ear-warmer
You may remember hearing the news that Nintendo had been forced to cut their projected profit margins. The belt tightening was attributed by Senior MD Yoshihiro Mori to the costs of developing the hotly anticipated Revolution console.
Now comes news that Sony has been hit by similar problems. While Nintendo was forced to pare back its expected profits by a third, Sony has been hit by a 46% slump in income, with second quarter figures posted at 28.5 billion yen, down from 53.2 billion last year. Bear in mind that this is spread across the whole of Sony’s vast empire. The development costs of Kuturagi’s home super computer have been blamed, but the losses can’t all be laid at the PS3’s door. Competition has grown throughout the consumer electronics industry, and Sony - once seen as the last word in TVs and personal music systems - no longer enjoy that status.
It’s hoped that recently-appointed head honcho, the money-savvy Welshman Howard Stringer, will be able to steer the company to more lucrative heights. But the ride won’t be easy, with thousands of job cuts planned.
Now comes news that Sony has been hit by similar problems. While Nintendo was forced to pare back its expected profits by a third, Sony has been hit by a 46% slump in income, with second quarter figures posted at 28.5 billion yen, down from 53.2 billion last year. Bear in mind that this is spread across the whole of Sony’s vast empire. The development costs of Kuturagi’s home super computer have been blamed, but the losses can’t all be laid at the PS3’s door. Competition has grown throughout the consumer electronics industry, and Sony - once seen as the last word in TVs and personal music systems - no longer enjoy that status.
It’s hoped that recently-appointed head honcho, the money-savvy Welshman Howard Stringer, will be able to steer the company to more lucrative heights. But the ride won’t be easy, with thousands of job cuts planned.
Companies:
Sony
Read More Like This