It has reported an annual loss of $185 million.
The company took a big hit from its legal expenses related to an investigation into its stock option practices - $5.5 million went to the lawyers. But sales were down from $306 million to $266 million, which the company blamed on the console transition.
The total loss for 2006 was $185 million compared with net income of $35 million in 2005. Sales dropped from $1.2 billion to just over $1 billion.
But the company said it would be back above $1.2 billion this year, with profitability in Q4.