PS3 Causes Sony Profit Drop
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January 30th, 2007
Sony just announced its Q4 2006 profits, which dropped by 5.3% compared to 2005. The games divion lost $441 million in the last quarter alone, mostly due to the costly PS3 manufacturing process. Sony is selling the PS3 console at a big loss, estimated production cost is over $900. But it’s not all bad news, as Sony’s other businesses did quite well to compensate for the loss. Their HDTVs and digital cameras, as well as successful movies like Casino Royale 007, contributed to an overall Q4 profit of $1.3 billion. This is significantly higher than Nintendo’s record profits of $991 million for all of 2006. Analysts are still doubting the PS3 becasue of the weak start, resulting in Sony’s stock taking a modest hit on the Japanese market today.
Read (NY Times)
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