Sony profits dip on slow PlayStation sales

Sony Corporation reported a 25 per cent drop in quarterly profit today amid slack sales of its PlayStation 2 game console and…

Sony Corporation reported a 25 per cent drop in quarterly profit today amid slack sales of its PlayStation 2 game console and slumping demand for its audiovisual products.

The electronics maker and entertainment company also had a poor performance in its movie and music divisions, while demand for its mainstay electronics goods remained weak.

It cut its full-year operating profit forecast by 23 per cent to 100 billion yen, while maintaining its net profit estimate of 50 billion yen.

Sony's results were overshadowed by an impending announcement of a $2.5 billion overhaul of its electronics business, which suffered a 6.5 per cent sales drop in the year ended March 31st.

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Sony said group net profit totalled 32.93 billion yen ($302.2 million) for the three months to September 30th, versus a net profit of 44.05 billion yen in the same period a year earlier. Revenues rose to 1.80 trillion yen from 1.79 trillion a year ago.

The company's profits were above an average estimate from five analysts of a net income of 12.68 billion yen.

On an operating basis, quarterly profit fell 34 per cent to 33.21 billion yen, and pre-tax profits fell 10 per cent to 44.06 billion yen.