Sony Annual Profit Falls
May 16, 2007 at 2:08 PM (PT)
SONY CORP. today reported a 68% drop in annual operating profit -- from 226.42 billion yen to 71.75 billion yen -- due to massive costs to launch the PlayStation 3 (PS3) game console and recall 9.6 million units of its laptop PC batteries. The company said it is taking steps to cut PS3 production costs, among other things, to become profitable again, predicting a record 320 billion yen ($2.8 billion) profit for the year through MARCH 2008.
SONY BMG suffered a drop in both sales and profit, mainly due to an overall decline in the music market. The company said bestsellers included JUSTIN TIMBERLAKE's "Future Sex/Love Sounds" and BEYONCE's "B'Day."