Sony's electronics business declined in deficit and the game business turned to surplus again as PS3 production cost cuts

In the second quarter financial results for Sony,The operating profit of the core electronics business decreased sharplyWe informed you, but it turned out that it fell to the deficit at last in the third quarter settlement announced earlier.

In addition, the game business which had been lost in the second quarter financial settlement seems to be in surplus due to the reduction in manufacturing cost of PS3.

Details are as follows.
Sony Japan | Third quarter 2008 performance briefing session

According to the explanation of this performance, in the second quarter financial results of Sony, operating profit of the electronics business turned out to be minus 15.9 billion yen. There is also a loss in the financial sector and Sony Ericsson.


Sales and operating profit of the electronics business are as follows. As a result of negative foreign exchange effects and reduced sales, intensified price competition, LCD TV "BRAVIA", personal computer "VAIO", digital camera "Cyber-shot" etc. are declining.


Factor of declining profit. It seems that the negative impact of currency appeared to be a direct hit rather than a decrease in sales and a deterioration in the cost ratio.


The financial sector also declined due to a sharp decline in the stock market.


In the game segment, although the overall profit declined due to the impact of currency effects and the decline in PS2 and PSP business sales, we maintained that the profit was maintained due to steady progress in manufacturing cost reduction of PS3.


In addition, it seems that Sony and Sharp decided to postpone the scheduled time to establish a joint venture company, which manufactures and sells large-sized liquid crystal panels that had been scheduled, for about one year from the beginning, due to the change in the global economy.

Sony Japan | Press Release | Talks for Establishment of a Joint Venture for Large LCD Panel and Liquid Crystal Module