Sony's Sad Financials Sting
Perhaps there is a Blu-ray at the end of the tunnel.
by IGN Staff
October 26, 2006 - Sony reported its income for the fiscal period ended September 30, and as predicted times are hard for the company. Sony's net quarterly profit dropped to 1.7 billion yen (approx. $14.7 million US) from the 28.5 billion yen (approx. 241 million US) from the year earlier. On the upside, overall revenue for the quarter rose 8 percent to 1.85 trillion yen (approx. $16 billion) from the 1.7 trillion yen (approx. $14 billion US) from the same time a year earlier.
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Sony Corp.'s Executive Vice President and Chief Financial Officer Nobuyuki Oneda has a bad day.
Sony was stung by the 51 billion yen (approx. $429 million US) price tag on a recall of nearly 10 million exploding laptop batteries. Sony Computer Entertainment, the company's game division, was also an anchor reporting 43.5 billion yen (approx. $368 million US) operating loss for this quarter. Declining sales of the PlayStation 2 and PlayStation Portable worldwide and sliding PS2 game sales were partly responsible for the shortfall.
The company also explained that the cost of research, development, and launching of the next-gen PlayStation 3 console was substantial.
Sony now predicts an 80 billion yen (approx. $674 million) for the entire fiscal year. With the launch of the PS3 in November, Sony expects overall annual revenue to rise 10 percent to 8.23 trillion yen ($69.5 billion).