Earnins: Sony’s Woes Continue

Sony announced its second quarterly loss in a row and slashed its profit outlook, in its Q2 earnings. Sony posted a net loss of 7.3 billion yen ($65.2 million) in Q2, compared with a profit of 23.3 billion yen a year earlier. Sales dropped 3.3 percent to 1.56 trillion yen ($13.9 billion), from 1.61 trillion yen.

On the games side, it saw a 64 percent sales increase to 105.4 billion yen ($941.1 million). But the division also booked a 5.9 billion yen ($52.7 million) operating loss due to marketing and research expenses. That loss widened from 2.9 billion yen the previous year. Shipments of Sony PSP, which went on sale late last year in Japan and earlier this year in the U.S., totaled 2.09 million worldwide, while PS2 sales rose nearly fivefold to 3.53 million units.

Full results here..
FT: Lex Live: [Sony CEO Howard Stringer] has scope to withdraw from non-profitable segments like old-fashioned TVs. The movie business is lumpy and, since convergence of content and hardware is fairly elusive, could comfortably be spun off — though Sir Howard, who cut his teeth at Sony in show business, may disagree. Games is also seen as integral, but any business that doubles its operating loss while lifting sales 64 per cent has to come under scrutiny. The fear, as ever, is that Sony avoids tough action: the beauty of rock-bottom expectations is that they are easy to out-perform.”