PS3 News: Sony's 07/08 Profit Will Quintuple, Games Division Losses Down - PS3 News

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Sony's 07/08 Profit Will Quintuple, Games Division Losses Down

Last year, Sony's operating losses in the games division were sky-high due to the amount of money they poured into the PlayStation 3. However, one year later, they've successfully managed to shrink those losses by a huge amount, and despite missing their company forecast by 30 billion yen, Nikkei and Reuters are reporting that overall operating profit for the 07/08 year should leap "more than fivefold to 380 billion yen ($3.6 billion)."

Now, 380 billion ain't bad, but that's still below the consensus estimate of 393.6 billion yen posted by 17 analysts by Reuters Estimates. Even so, to gamers, it's the games division that interests us the most, and Sony appears to be heading in the right direction. Operating losses in our favorite division shrank by about 100 billion yen in the year ending March 2008, which will certainly help to ramp up the company's profitability. In March 2007, the staggering 232 billion yen loss in the games division was cause for concern, but due to lower manufacturing costs and better system sales worldwide, the early negative effects of PS3 production are starting to dry up. They may have fallen short in comparison to analyst expectations, but those expectations were quite high to begin with.

Lastly, Sony shares were up 3.1% to 4,930 yen as of midday yesterday, which easily outstripped the Nikkei's stock average of +1.8%. There's still a long way to go before all losses fall away in the games division, but Sony has said it before and will probably say it again: "it's a marathon, not a sprint."

5/2/2008 Ben Dutka

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Comments (3 posts)

Reccaman18
Friday, May 02, 2008 @ 11:46:31 AM
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I love the way Sony is looking at this generation.

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Minishmaru
Friday, May 02, 2008 @ 4:41:32 PM
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Even tho everyone well every anti-Sony person out there, kept trying to put down Sony and their products...they still amaze me every time cuz look at the position they're at now! Seriously...the lack of good games on the Wii and 360...just goes to show what that 1 year head start did for the 360 and that was about the ONLY thing that helped them out. I still love my DS tho lol, theres no denying that :-P

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Jdogtoocool
Friday, May 09, 2008 @ 2:01:16 PM
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That's not too bad but with the upcoming Metal Gear Solid 4 Guns of the Patriots, Final Fantasy XIII, God of War III, and Resident Evil 4 there are even better chances of the PS3 to come in second place in the console wars if they still exist...

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