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Sony expects continued gaming losses despite upgraded PSP forecasts

Past predictions of profitability won't come this term say CFO.

 

Sony issued today a downgrade to its profit forecasts for the year ending March 2009. In gaming, despite stronger hardware sales, the company said that it is unlikely to reach profitability during the term.

During its July report, the company forecast an operating profit of 470,000 million yen. Today, it downgraded this 58% to 200,000 million yen. The company cited the rising yen as the primary factor. It also made note of lower-than-expected sales for LCD televisions, digital cameras, video cameras, and other products due to the financial slowdown and increased price competition.

Games alone contributed a drop of 30,000 million yen to the the expectations drop. This is despite rising expectations for the PSP and level expectations for the PS3. Sony expects to meet its original goal of of 10,000,000 PS3 systems for the year. For the PSP, the company raised its expected yearly hardware sales from 16 million units to 17 million.

Sony has in the past said that it would reach profitability this year in its game division. That's looking unlikely. At a press conference held in Tokyo today, CFO Nobuyuki Oneda blamed the "currency impact" as the reason that reaching the black in gaming will be difficult this year. Were it not for the effects of the exchange rate, he said, Sony's game division would be profitable.

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