Sony gets its finances back in order

PSP 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.

FULL STORY:

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]

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