Sony released their earnings report this week, reporting a drop in net profits compared to the previous fiscal quarter. Net profit was posted at 325.2 million, down 47.4% overall for the company.
The drop in profits are attributed to a weak dollar strengthening yen, losses at mobile phone company Sony Ericsson, increased competition in the digital camera and camcorder markets, price cuts on Sony Vaio PC's and a 31% drop in profits for their Hollywood studio, Sony Pictures.
Meanwhile, Sony's video game division is doing extremely well, reporting a 16.8% jump in sales from last year. The PS3 exhibited strong profit performance due to manufacturing cost reductions and increased sales of both hardware and software. 1Q last year, Sony games posted an operating loss of $242 million, this year we see an operating profit of $50.2 million.
We can now lay to rest the lingering rumor that Sony is losing money on each PS3 sale. It sounds like it's all profit from now on for Sony games.
