An exclusive gaming industry community targeted
to, and designed for Professionals, Businesses
and Students in the sectors and industries
of Gaming, New Media and the Web, all closely
related with it's Business and Industry.
A Rich content driven service including articles,
contributed discussion, news, reviews, networking, downloads,
and debate.
We strive to cater for cultural influencers,
technology decision makers, early adopters and business leaders in the gaming industry.
A medium to share your or contribute your ideas,
experiences, questions and point of view or network
with other colleagues here at iVirtua Community.
The overall financial picture of Sony is a positive one. For the financial quarter ending in September the electronics giant posted profits of 90.5 billion yen ($793.4 million). Last year, in the same timeframe, Sony posted losses of 20.83 billion yen ($182.6 million). So things are looking up. The problem is in the game division: it's still not profitable, and it's not very close to becoming so. For the quarter, the game division lost 96.7 billion yen ($847.6 million).
Sony is candid about where these losses are coming from. "In the game segment, operating loss increased primarily due to the loss arising from strategic pricing of PS3 at points lower than its production cost and the increase in PS3-related inventory write-downs recorded during the current quarter compared to the same quarter of the previous year," the company announced in a statement.
Even with strong sales in both the PlayStation 2 and PlayStation Portable areas, the continuing cost of the PlayStation 3 mixed with low sales as well as price drops means that Sony has a very hard road ahead of it. Despite solid sales of electronics, the gaming division continues to drag the company down in its financial reports.
TOKYO, Oct 25 (Reuters) - Sony Corp (6758.T: Quote, Profile, Research) said on Thursday it would aim to break even or better in its game business in the second half of the business year to March.
Sony's game business posted an operating loss of 96.7 billion yen ($847.6 million) in the July-September quarter, which it attributed partly to selling its PlayStation 3 below what it cost to produce the video game console.