Sony cuts profit projections on games division to 2%

Sony cuts profit projections on games division to 2%
Aaron Lee

By Aaron Lee

May 24th 2013 at 12:26PM

PlayStation manufacturer cuts back predictions by six per cent

Sony has cut the predicted profit margins on its PlayStation business for the year to March 2015 by six per cent.

It had expected to make profits of eight per cent but has reduced that to just two per cent.

The hardware maker is still aiming for sales of one trillion yen for its games division, as it increases its focus on digital sales through the PlayStation Store and pushes marketing and discounts for the Vita handheld.

“In particular, the company will seek to grow sales of content and services through PlayStation Store and contribute to profit. For PlayStation Vita, the company will aim to secure further sales and profit through various hardware sales initiatives and the introduction of compelling software titles,” said Sony in a statement.

Sony’s PlayStation 4 is expected to launch later this year, but said it’s not concentrating on that part of its business until the following financial year, which ends March 2016.

In last financial year, revenues for Sony’s the PlayStation business fell by £180m.

Earlier this week, Sony shares spiked when CEO Kaz Hirai said that Sony is considering spinning off its entertainment business, which includes, its music, TV and film divisions.