Sony Profit Up, Forecast Down

PlayStation 3 is finally in the black, but outlook for consumer electronics is weak

By Jim O'Neill, Newser Staff

Posted Jan 31, 2008 7:44 AM CST

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Sony Profit Up, Forecast Down — Sony Corp.'s world's first TV to go on market with an organic light-emitting diode display is shown during a press unveiling in Tokyo Monday, Oct. 1, 2007. The 200,000 yen (US$1,700; euro1,200) 11-inch display TV called XEL-1, set to go on sale in Japan Dec. 1, measures just 3 millimeters (0.12 inches)... (Associated Press)

Slowing US consumer spending and a strengthening yen are prompting Sony Corp to cut its profit forecast for the fiscal year that ends in March. Estimates released yesterday were cut nearly 8%, to $3.85 billion, despite its PlayStation division showing a profit for the first time in two years, reports Bloomberg. Earnings from sales of televisions were off by some 70%.

Sony said third-quarter profits rose 25.2% due, in large part, to reduced costs for its PlayStation 3. The company sold 4.9 million PS3 consoles in the October-December quarter, but reduced its sales forecast for the machine to 9.5 million from the 11 million it had expected for the full year. The PS3 continues to lag behind Nintendo’s hugely popular Wii. (More Sony stories.)

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