Sony's Earnings Hit by Battery, Gaming Woes
As expected, Sony's earnings fell for 2006 due to costs associated with the PlayStation 3 and the battery recall. What's ahead for Sony? Will the loss associated with the PS3 be a thing of the past in 2007 or will Sony continue to lose money with their new console?
Sony laid the blame for the earnings shortfall primarily at the feet of Sony Computer Entertainment, the division responsible for consoles. SCE posted a ¥54.2 billion loss ($443 million) due to the costs associated with manufacturing and launching the PlayStation 3 along with lower sales of the PSP and price cuts on the PS2. Last year, SCE saw a ¥67.8 billion profit ($556 million).