Sony reports record losses - over $560 million

Poor PlayStation 3 sales blamed

16 May 2007 11:43 GMT / By Amy-Mae Elliott

News provider Bloomberg is reporting that Tokyo headquartered Sony Corp has reported its biggest loss in 4 years. The loss came to over $560 million in the 3 months to 31 March 2007.

It's thought the dire figures are a direct result of Sony's PlayStation 3 not being the out and out success on launch that was predicated leaving them unable to recoup the massive development costs.

Rival Nintendo's Wii is currently out-selling the PlayStation 3 by approximately two to one.

Poor PlayStation 3 sales could be blamed on consumer apathy at the much-delayed console eventually hitting the market way behind the two other next-gen gaming platforms, Microsoft's Xbox 360 and the previously mentioned Wii.

Another factor could be the PlayStation 3's high price putting off gamers buying into a new system.

According to Bloomberg the loss is so severe that it could not be countered by profits from Sony's successful consumer electronics lines such as their Bravia televisions, and even Sony's movie studio's recent success with the blockbuster "Spider-Man 3" could not save their overall financial results.

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