Sony this week reported that its third quarter 2008 ending December 31, 2007 had a net profit increase of 25% due to strong sales of household electronics such as its Bravia LCD TV sets and digital cameras and an operating profit at its games division for the first time since 2005.
However Sony cut its 12-month sales target for PlayStation 3 (PS3) consoles to 9.5 million from 11 million previously.
Sony said it sold 4.9 million PS3 consoles during the latest quarter, adding to the cumulative 10.5 million machines sold since it went on sale late 2006.
The most recent numbers indicate that Microsoft has sold 17.7 million Xbox 360s worldwide. It was brought to market about a year ahead of Sony’s PS3.
Revenue in the games division increased 31.2% primarily due to increased PS3 sales. Major drops in the costs of making PS3s helped increase profits. Sony has cut prices by 17% in the United States and Europe, and by 10% in Japan. It introduced a less expensive unit by removing the components that are needed to play PS2 games.
Revenue at Sony Pictures declined 24.6% year-on-year due to a decrease in film revenues in both the theater and television markets. Operating income decreased due to the relative underperformance of films released theatrically in the third quarter as compared to those released in the same quarter of the previous year and lower revenues from films released in the television market.
Sony lowered its forecast for operating profit in the year ending March 31, 2008 to $3.86 billion from $4.22 billion. Sony has terminated some 10,000 employees and closed a number of locations as part of its goal to earn a 5% margin. Its forecast for the year is now 4.6%.