Sony Announces Better-Than-Expected Q1 Earnings
Yesterday we reported on Microsoft's record earnings, but it's not the only company to have a good first quarter. Today Sony announced a nice $385 million profit for the July-September period.
Sony's profit is even more impressive considering that last year Sony lost $326 million during the same time frame. Whereas Microsoft attributed its increased earnings to Office 2010, Windows 7, and the Xbox 360, Sony stated increased PC sales and the double punch of reduced hardware cost and increased sales for the PlayStation 3 are to thank for the turnaround. However, Sony revealed that its games business as a whole is down from last year, due to a 50% decrease in PSP sales, and the continuing decrease in PS2 sales. In light of its other successes, Sony has increased its annual profit expectations from $743.8 million to $867.7 million. Like Microsoft's upcoming launch of Kinect, it will be interesting to see how PlayStation Move (not to mention the rumored PSP phone) affects Sony's profits for the rest of the year.