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Sony hit hard by PS3 and battery troubles

One trick Sony
Thu Oct 26 2006, 14:43
SONY IS IN a spot of bother, it would appear, having today announced that its net income has dropped by a massive 94%, which it is blaming on PS3 delays and humongous battery recalls.

Sony's cut down its full year profit forecast by 38% thanks to the battery recall palava, and is now expecting a profit of $673 million, quite the change from its original forecast for $1.1 billion.

According to the Wall Street Journal, for the quarter ended Sept. 30, Sony reported a net income of ¥1.7 billion, which is about $14.3 million US dollars. Compared to ¥28.5 billion in the same period last year, things ain't looking too good for the electronics powerhouse.

The games division reported a 21% loss to ¥170.3 billion. The delay behind the PrayStation 3 - as we are calling it, because only through some kind of religious miracle will anyone be able to afford one - is hitting Sony hard, as gamers are putting off buying PS2s and holding out for the PS3. PSP sales have also been down.

Sony said that it is expecting to take a ¥51 billion charge to cover the costs of The Big Battery Recall, which has affected over nine million laptops. µ


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