Sony's game division takes cash hit

Sony's games division takes a 29.1% drop in sales and operating revenue. Cell processor to blame.

Sony posts better then expected earnings as a whole, but the games division took part in the operation and sales losses. Not too suprising seeing as Sony has put a good deal of effort into R&D for the new PlayStation 3 product.

PS2 and PSP? The profits on the current console and hand held were said to be relatively unchanged from last quarter. Apparently Europe had an increase in PS2 sales. PSP software sales, over all, increased a bit while PS2 software sales dipped.

The drop in sales, perhaps could be gamers anticipating (read: saving up) for the PlayStation 3 model?

Considering Sony still posted positive earnings with a game division burning cash it might be possible for them to burn a few more quarters testing the waters with the PS3 and not have to tell their investors 'we failed.' Of course, if the PS3 is a huge success it only means fatter pockets for the Yen wielding empire.

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