Sony may have admitted losing over $3 billion in the past 2 years on the PS3, but insists this coming financial year will be rosy.

The electronics giant has announced a new strategy to drive its television and video game units into profitability this financial year.

Moves include cutting production costs in its TV business and investing in a bid to become number one in the LCD TV business in the next three years.

A film download service for PS3 owners is hoped to boost sales of the consoles this summer.

Sony admitted earlier this month that it lost $2.16 billion in 2007 and $1.16 billion in 2008 on the PS3.

The next-gen console allegedly costs over $800 (around £400) to manufacture, yet launched with a price tag around $500-600 (£250-300) in 2006.

Overall, Sony is to invest about $17bn (£8.6bn) in its key businesses over the next 3 years.