Sony Counting On PlayStation 3 And Flat TVs - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News
News
4/28/2006
09:41 AM
50%
50%

Sony Counting On PlayStation 3 And Flat TVs

Sony is forecasting sharp falls in operating profits at many of its divisions for the year ahead as it reported a Yen 66.5 billion ($581 million) loss for the January-March quarter, worse than the Yen 56.5 billion ($501 million) loss in the same period last year.

LONDON — Sony is forecasting sharp falls in operating profits at many of its divisions for the year ahead as it reported a Yen 66.5 billion ($581 million) loss for the January-March quarter, worse than the Yen 56.5 billion ($501 million) loss in the same period last year.

It is the fifth year in a row in which the firm has made losses in the final fiscal quarter.

Sales for the quarter were up 8.7 percent to Yen 1.85 trillion ($20 billion).

The group said operating profit for 2006-07 would fall 48 percent to Yen 100 billion ($ 872 million) well below previous forecasts of Yen 171.2 billion.

Projected sales for next year were Yen 8.2 trillion ($71.4 billion) an increase of 10 percent.

However, Sony said its core electronics division was recovering and that sales of flat TVs was booming, while sales of the portable PlayStation were ahead of forecasts.

It also suggested any fully fledged recovery would depend on the successful launch in November of its PlayStation3 games console. Start-up costs for the PS3 3 will push its game division deep into the red, the company said.

"We believe that we can lower costs dramatically [on the PS3] through chip shrinkage and by cutting the number of parts, but there is no way to avoid high costs in the first year," said Sony Senior Vice President Takao Yuhara.

Under its Welsh-born chairman, Sir Howard Stringer, Sony is streamlining its operations by ditching product ranges, closing factories, selling off assets and cutting 10,000 jobs worldwide.

The firm said it had saved Yen 38 billion ($33 million) in fiscal 2005.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of IT & Cybersecurity Operations 2020
The State of IT & Cybersecurity Operations 2020
Download this report from InformationWeek, in partnership with Dark Reading, to learn more about how today's IT operations teams work with cybersecurity operations, what technologies they are using, and how they communicate and share responsibility--or create risk by failing to do so. Get it now!
Slideshows
10 Ways to Prepare Your IT Organization for the Next Crisis
Cynthia Harvey, Freelance Journalist, InformationWeek,  5/20/2020
News
IT Spending Forecast: Unfortunately, It's Going to Hurt
Jessica Davis, Senior Editor, Enterprise Apps,  5/15/2020
Commentary
Helping Developers and Enterprises Answer the Skills Dilemma
Joao-Pierre S. Ruth, Senior Writer,  5/19/2020
Register for InformationWeek Newsletters
Video
Current Issue
Key to Cloud Success: The Right Management
This IT Trend highlights some of the steps IT teams can take to keep their cloud environments running in a safe, efficient manner.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll