Riding high on strong TV and PSP sales during the holiday season, Sony surprises investors by posting a big profit instead of a big loss.
After profits rose 17.5 percent in the October-December quarter, Sony adjusted its forecasts for the rest of the financial year (ending in March). Instead of losing $86.9 million, the company now expects to make $608 million on $64.3 billion in sales.
What caused the turnaround? Strong sales of flat-panel televisions during the holidays, as well as the widespread popularity of the PSP, which outsold PS2 this holiday season.
Sony is in the midst of a big cost-cutting period, led by their first non-Japanese CEO, Howard Stringer. Though a lot of questions loom ahead — the PS3, Blu-ray, and so on — this is good news for the company, and perhaps a sign that Stringer’s plan is working. We shall see.
In related news, Nintendo also posted strong profits for this quarter, and they’ve announced a new, smaller version of the DS (aptly titled DS Lite), for release in Japan in March. No word yet on when it hits the States.
• Sony Sees Profit As It Attempts Turnaround [AP via Forbes]
• Sony posts strong quarterly results [Gamespot]
• Nintendo posts strong Q3 profit [Reuters via CNN]