Sony (SNE) Earnings Undermined By PS3

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By Douglas A. McIntyre Updated Published
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According to The Wall Street Journal:  "Sony posted a group net profit of ¥73.7 billion ($645 million) in its fiscal second quarter, compared with ¥1.7 billion a year earlier."

The company’s game division posted a deeper operating loss of ¥96.7 billion for the quarter, compared with a ¥43.5 billion operating loss in the year-earlier period, even though the PlayStation 3 game console sold 1.31 million units. The deterioration was caused by lower prices on PS3 consoles and a write-down of inventories.

The news shows just how brutal the situation is for the PS3. Despite price drops, it is still being outsold by the Nintendo Wii and Microsoft (MSFT) Xbox 360. The new Xbox "Halo 3" game should improve sales into Christmas.

But, the holidays are going to be difficult for Sony.

Douglas A. McIntyre

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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