Analysts: Sony Profit to Fall 50%
January 29, 2007
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A median estimate from five analysts surveyed by news agency Bloomberg has predicted that Sony’s third quarter results could see profits fall by a half, due to slower than expected sales of its flagship PlayStation 3 video game Blu-ray Disc console.
New estimates suggest that the company will see group income fall to ¥84.1 billion ($689 mil.) for the three months ended December 31st. Sales for the games division alone are estimated at ¥390 billion ($3.20 bil.), with operating results predicted at a loss of ¥50.9 billion ($417 mil.).
The “unexpected” success of the Wii, rather than direct competition from the Xbox 360, is cited as the major reason for the shortfall. However, the group as a whole may still exceed its full year profit targets thanks to a weak yen, good sales of the Bravia range of high-end televisions, and growth in the company’s movie division.
Analysts predict that Sony’s game division will lose as much as ¥191.9 billion ($1.57 bil.) for the full fiscal year, compared to a profit of ¥8.7 billion ($71 mil.) the year before. The company’s official fiscal results for the third quarter are expected to be released later this week.
PS3 sales in Japan dropped further in the week to Jan. 21 as the games market there suffered from lackluster demand compared to recent week. PS3 suffered its worst week of sales since launch for the second week in a row. A total of 21,105 of the consoles were sold during the week, said Media Create Co. Ltd.
Sales of the Nintendo’s Wii console and Microsoft Xbox 360 were 8,395 and 7,041for that week, Media Create said; both down from the previous week.
