Sony returns to profit helped by computers, PS3
updated 12:50 pm EDT, Fri October 29, 2010
Sony Q3 2010 back in profit through PS3 and PCs
Sony wrapped up its week with results for its summer quarter that brought it back to health. It had a net profit of about $384 million versus a loss of $326 million a year ago and owed much of this to its Networked Products group, which covers both PlayStation consoles and its VAIO PCs. Computers were the biggest help, as the company was facing "expanding market share in all regions."
SCE, the gaming division, also marked its fourth quarter of being profitable and earned $161 million in profit on its own. Although PS3 sales are still growing slowly, Sony's ability to get PS3 assembly costs under check has kept it from being a money losing operation. The past year has been Sony's first since the launch of the PS3 where it could say SCE was profitable, as it had deliberately sold the console at steep losses from 2006 on to push Blu-ray.
PlayStation Move's launch in mid-September also helped spur gaming, Sony said.
In spite of the positive outlook, Sony joined Samsung in warning that the TV market would be fiercely competitive. Pricing was likely to be low, it said, although any losses in TVs were expected to be far gentler than last year, when it lost $905 million. Sony plans to ship 25 million TVs, or 60 percent more than during the 2009 holidays.
An overly strong Yen is expected to impact the results, but Sony's cost-cutting over the past year is poised to cushion the blow, according to the company.
