Huge losses reported by Sony consumer division

Huge losses reported by Sony consumer division
Craig Chapple

By Craig Chapple

November 2nd 2011 at 2:20PM

Tech giant blames PS3 price cuts and decrease in LCD, PC and game sales

Sony has reported a loss of $443 million for the second quarter ending 30th September in its consumer products and services division.

The huge loss in the division, which includes Sony’s Playstation 3 and LCD television business, compares to the $13 million profit the company made in the same quarter last year.

Sales meanwhile decreased 12.3 per cent year on year to $10 billion, with Sony attributing blame to falling LCD television, software and PC sales as well as its PS3 price reduction.

The company also cited the deterioration in market conditions in the US and Europe and unfavourable exchange rates as other reasons for the loss.

The results come despite an increase in PS3 sales increasing in the quarter to 3.7 million, compared to 3.5 million last year, although the PSP dropped by 3 million sales to 8.1 million sold in the quarter.

Across its entire business, Sony has forecasted a profit of $331 million for the full fiscal year, down 81 per cent from last year’s $1.7 billion.

The news comes after Nintendo reported a loss $925 million, its first in 30 years, for the first half of 2012, whilst EA also revealed it had made losses of $340 million for the quarter ending September.