No Fun And Games For Sony
Sony's fourth quarter earnings were hit hard by losses in its video games division, which has been selling PlayStation 3 consoles for less than it costs to produce them, hoping that they'll make up the losses from sales of games. The unit has also been hit hard by the popularity of Nintendo's Wii video game with its highly praised motion-sensor controller andcosting less than half the price of a PlayStation 3. Nevertheless, Sony put a positive spin on the results, noting that profits at its movie unit rose 9 percent, largely as a result of strong ticket sales for Casino Royale and The Pursuit of Happyness. Its line of Bravia television sets also generated strong sales. The company said today (Wednesday) that it expects net income will more than double this year, largely due to continued strength in its consumer electronics division and narrower losses in its games unit. Mitsushige Akino, an analyst at Ichiyoshi Investment Management Co. in Tokyo, told Bloomberg News, "It's clear that Sony has got out of its worst period."