Sony games division posts profit

The beginning of the PS3 life cycle was not good for the company coffers. The launch period resulted in significant losses for Sony. Q1 2008 for PlayStation resulted in a ¥29.2 billion loss (US$276 million). Look how quickly things have turned around, though. The first quarter of Sony's new fiscal year (April-June) has shown the games division posting a profit, albeit a small one. The games division was responsible for ¥5.4 billion in operating income (or US$51 million).

What's responsible for the startling change in profitability? Strong sales of the PS3 and PSP, of course. PS3 sold 1.56 million units this quarter, more than double that of Q1 2008. More importantly, 22.8 million units of PS3 software were sold during this time, an increase of 385% from the same period last year. PSP sold 3.72 million units that quarter as well.

This news will undoubtedly come as good news for investors. However, with so much money still lost on the PS3, Sony will need a few more quarters of strong earnings to recoup the costs of launching the PS3 into our homes.

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