Sony looking for profits from other divisions to counter losses from Playstation 3 sales

Sony looking for profits from other divisions to counter losses from Playstation 3 sales

Sony Corp. has said that they are aiming at enhancing profits from movies and consumer electronic divisions to counter the impact of losses from PS3 sales.

The company aims to achieve profit margins of 5 percent next year.

Howard Stringer, chairman and chief executive of Sony said in a statement on their goals: “We promised the margins for next year will be 5 percent and we have every intention of doing that. Considering some of the additional costs of PlayStation 3, we have to generate some excitement and profits from elsewhere in the company to offset the performance of PlayStation 3.”

He added that Sony’s movie unit was very strong this year and they are hoping high returns from their consumer electronics division.

The company recently posted an operating loss of 20.83 billion yen for July-September as they suffer from this huge recall of notebook batteries.

Stringer added: “I think the idea of worrying about a delay in PlayStation is slightly strange to me. Every complex technology runs the risk of delays. The point really is that PlayStation 3 is already finished and has been tested in America and has been deemed a creative success. In the end that is what counts.”