Sony: Games losses double but overall profits climb

Sony has confirmed that operating losses for its games division have more than doubled for the quarter ending September 30th, hitting YEN 96.7 billion compared to YEN 53.2 billion in the same period last year.

However, across the whole business Sony posted a quarterly operating profit of YEN 90.5 billion, up from the YEN 20.83 billion loss in the same period last year. The results were credited to strong sales of LCD TVs, cameras and camcorders.

In the period Sony sold 1.31 million PS3s and 10.3 million PS3 games globally, whilst PS2 shifted 3.28 million units and 38 million games. The PSP fared well, too, selling 2.58 million units and 12.6 million games.

A company statement read: 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 added that it aims for its game business to break even or better in the half fiscal year ending March 2008.

Sales expectations for the full financial year have been revised, with Sony now expecting to shift 10 million PSPs and 12 million PS2s. Sony says that it still expects to sell 11 million PS3s during the current year.