Sony has slipped into the red reporting losses for the last 3 months of operation. However they are expecting bigger than expected profits this year because of booming sales of Bravia LCD TV's and camcorders. A big problem for the Company is still video gaming with the PS2 and PS3 dragging the overall performance of the Company down.
Currently Sony is locked in a three-way battle with Microsoft and Nintendo in the gaming market with the Company claiming that they will narrow losses by cutting manufacturing costs of the PlayStation 3 game console
Sony said that it expects its operating profit to grow 20 percent to $4.34 billion in the year to March 2009, beating a consensus of 428.5 billion yen in a poll of 17 analysts by Reuters Estimates.
Japanese exporters including Sony are facing tough business conditions this year due to a firmer yen, rising raw materials prices, and signs of a slowdown in the global economy.
Operating losses came to 4.7 billion yen in January-March, an improvement from the 113.37 billion yen loss it posted a year earlier when it was hit hard by hefty startup costs for the PS3.
