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Price cuts hit PlayStation profits

But LCD TV business blamed for losses across Sony Corp; Full year profits expected to be down 80%

Sony's Consumer Products & Services division - which includes the PlayStation business and LCD televisions - suffered a ¥34.6 billion loss ($449m) for the second quarter ended September 30, down from the ¥1 billion profit for the same period last year.

Sales were down to ¥779.7 billion ($10.1bn) for the quarter compared to ¥889 billion, with the PlayStation 3 price cut and software sales as a contributing factor. The company lowered the price of its console in August this year across all regions.

However, it was the manufacturing costs associated with the LCD business that not only pulled the Consumer Products & Services division down, but hit the entire Sony Corporation's bottom line.

Sony Corp recorded losses of ¥1.6 billion ($21m) for the period, down from ¥68.7 billion profit in 2010. Sales were down just over 9 per cent from ¥1.7 trillion to ¥1.5 trillion, with the company blaming continued weak performance in TV sales and manufacturing.

For the full 2011 financial year Sony now expects profits of ¥25.9 billion, down over 80 per cent on last year's ¥135.7 billion, with sales of ¥3 trillion, down from ¥3.3 trillion.

Sony sold 3.7 million PlayStation 3 consoles during the 3 months, up from 3.5 million in 2010, and 1.7 million PlayStation Portable units, up from 1.5 million. The PlayStation 2 shifted another 1.2 million, down from 1.5 million.

PlayStation 3 software topped 37.4 million units, up from 35.3 million, with PSP software at 8.1 million, down from 11 million in 2010. PlayStation 2 game sales dropped from 5.6 million to 2.8 million.

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Matt Martin

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Matt Martin joined GamesIndustry in 2006 and was made editor of the site in 2008. With over ten years experience in journalism, he has written for multiple trade, consumer, contract and business-to-business publications in the games, retail and technology sectors.

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