View Single Post
Old 01-29-07, 06:17 PM   #2
saturnotaku
Apple user. Deal with it.
 
Join Date: Jul 2001
Location: The 'burbs, IL USA
Posts: 12,502
Default Re: Any one read this yet?

Here 'ya go:

Quote:
Originally Posted by article
The expensive PlayStation 3 may have cut into Sony's profits significantly for the third quarter ended this past December, Bloomberg.com has reported. The games division is expected to lose a record 191 billion yen by the end of Sony's fiscal year.

According to the median estimate of five analysts surveyed by Bloomberg.com, Sony's third-quarter profit may have fallen as much as 50 percent for the holiday period ended December 31, 2006. The report specifically singles out Sony's games division as the likely cause for net income dropping to 84.1 billion yen ($691 million) from a record 168.9 billion yen during the same period a year earlier.

The games division is expected to post sales of 390 billion yen, with a loss of 50.9 billion yen for the holiday quarter. For the full fiscal year ending in March, the games division is predicted to lose 191.9 billion yen, compared with profit of 8.7 billion yen the previous year.

The PS3 is estimated to lose upwards of $300 on each unit sold, according to a recent analysis by iSuppli.

Bloomberg says the results "may highlight Chief Executive Officer Howard Stringer's failure to fend off Nintendo, whose $250 Wii console outsells the PlayStation 3 by two-to-one."

"A drop in third-quarter results is largely expected on the games division. There's no surprise unless the company further reduces its profit forecasts,"' said Mitsushige Akino of Ichiyoshi Investment Management Co. in Tokyo. Akino added that investors should avoid Sony stock "until the company improves its earnings."

That said, sales at Sony as a whole for the third quarter are expected to rise 9.6 percent to 3 trillion yen, and Sony may still beat its full-year profit target because of a weaker yen, sales of Bravia televisions and growth at its movie unit.

Meanwhile, Nintendo (which claims to make money on Wii hardware) just posted record net sales and profits for the holiday period. Microsoft's recently reported earnings revealed a nice increase in sales for the Xbox division, but losses persisted and Microsoft cut its Xbox 360 hardware outlook for the second half of its fiscal year.
http://biz.gamedaily.com/industry/feature/?id=15086
saturnotaku is offline   Reply With Quote