Sony's Game Business unlikely to turn a profit this year
With Sony's latest Fiscal Report right around the corner Sony executives have today warned investors that overall profits will be down and the ailing videogame division will fail to turn a profit yet again.
The warning states that overall company profits will be at least 57% lower than originally projected; a huge downturn that will unsettle investors.
While lower profits will undoubtedly be related to the global credit crisis, other factors will include certain segments of Sony failing to turn a profit and weakness of the Japanese Yen.
In a question and answer period, an investor asked if the company would manage to squeeze a profit out of the failing TV and videogame businesses this year, as executive Howard Stringer promised earlier in the year.
The response wasn't one investors wanted to hear. "It's looking doubtful. In my personal opinion, next year could be another difficult one for us," a Sony financial officer responded.
On the bright side for Sony, though, the company is currently right on target to hit initial shipment forecasts for the PS3 - selling 10 million units in this fiscal year. In turn, next year could see a profit.