Sony faces $366.6 Million loss in games division

By Justin Mann on October 26, 2006, 7:12 PM
Some real figures regarding the hurt Sony has been put under recently have been made available. For their overall company, profits were only a fractional 6% of what they were a year ago at $14.3 Million. What's even more astounding is that their games division has reported a loss rather than a profit. A massive one at that, with a loss of $366.6 Million. Various reasons have been cited for the losses, including the costly battery recall, production and launch of the PlayStation 3, reduced pricing on the PS2 and PSP as well as others. Slower software sales also played a part.

Supposedly they will still retain a healthy profit through the end of the year, though one must wonder how much of that is based on the potential sales of the PS3 and its games. Likely, Sony is not counting on their games division making much of a profit, if any, for a long time.

User Comments: 3

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spydercanopus said:
I think the fall of sony is coming. No longer are they the king of electronics. They're making the same mistake with Blu-Ray that they did with Betamax. Microsoft (XBOX) is backing HD-DVD and they have more muscle than Sony. HD-DVD is going to win (even tho it's not as good, i know).
jesse_hz said:
You think more DRM is good?
9Nails said:
DRM is bad - I will not be subscribing to either BluRay or HD DVD. Both formats are customer hostile in their protection schemes and prices. Plus I throw away too many rights of ownership. I'm quite happy with the money back in my pocket instead of watching higher definition movies.With many places to watch media now (Laptops, phones, MP3 players, cars, and hand held game players) I naturally want the ability of shifting to other formats, and to be able to back up the original disc. Hollywood prefers that I buy my movies for each device and buy the backup - that will never happen.
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