Filed under: Earnings reports, Deals, Microsoft (MSFT), Sony Corp ADR (SNE)
For years Playstation revenue carried Sony’s (NYSE: SNE) earnings. The PS2 was one of the great selling consumer electronics products of all time.
Sony nearly failed with the launch of the PS3. Microsoft’s (NASDAQ: MSFT) Xbox had taken too many customers and the Nintendo Wii became the world’s top game console. Sony’s CEO had to step down, and Sir Howard Stringer was brought in from the US to run the company.
Net income at Sony moved up 25% to $1.9 billion for the quarter ending December 31. Revenue rose nearly 10%. Some of this is due to the fact that for the first time in years Sony’s game division has finally gone into the black.
Television sales were the huge winner for Sony during the quarter. Financially, the game unit, which includes PS3 only made a modest contribution. But it is no longer a drag on earnings. According to Reuters, “its game business swung to a profit after Sony cut production costs and retail prices of the PlayStation 3 game console and broadened its game software lineup.”
Sony waited a long time for the PS3 to work out. That might be paying off.
Douglas A. McIntyre is an editor at 247wallst.com.
Entries (RSS)