Sony Cites PS3 Price, Downturn for Quarterly Loss
posted on by Justin Sevakis
On Wednesday, Sony Corporation reported its financial results for its current fiscal year's third quarter, during which it incurred an operating loss of US$1.1 Billion and a net loss of US$2.1 Billion. While losses were spread across most areas of business, the loss at the company's game division was partially attributed to the PlayStation 3's price drop in August 2011 to US$250, €250, or ¥25,000, as well as higher marketing costs and declining sales.
Other factors cited include a loss on its sale of its shares in a joint LCD manufacturing venture with Samsung, a strong Japanese Yen, lower prices for LCD TVs, poor cell phone sales, and a larger than expected supply chain disruption from flooding in Thailand. Overall sales for the quarter were about US$23 Billion, down 17.4 percent year-over-year.
On January 6, Sony announced that Vice President Kazuo "Kaz" Hirai will be promoted to President in April. As part of their announcements on Wednesday the company announced that Hirai will also be taking over as CEO, as current CEO Howard Stringer will step down.