Skip to Content

AOL Games

Sony slashes 2008 earnings forecast by 38% - PS3 profitability uncertain


Harsh reminder: despite being tasked by shareholders to deliver smiles to people's faces, video game companies aren't impervious to the worldwide economic d-d-d-downturn. Take Sony for example, who today slashed its 2008 earnings forecast by 38% citing "higher than expected foreign exchange losses" – a strong yen makes exports more expensive and, as luck would have it, the rest of the world is a pretty important component of Sony's business. A Tokyo-based analyst told Forbes that this was "just the beginning" for Sony and that "given the track record of this company, it will under-deliver all the way." Ouch!

But it's not just the yen picking up; a global recession will take a bite out of entertainment spending, meaning things like LCD TVs and 4D game consoles may not fare so well. "Sony will make further losses in televisions, videogaming and mobile phones ... despite early 2008 promises of profits in TVs and its PlayStation3 videogame console," writes Forbes. Add in a steeper price than the competitionand no sign of a price drop – and you've got a recipe for red ink stew.

Tags: BreakingNews, Sony

Reader Comments (Page 1 of 1)

Joystiq Features





Featured Galleries

Dragon's Lair (iPhone)

Dragon's Lair (iPhone)

Alien Breed Evolution (12/4/09)

Alien Breed Evolution (12/4/09)

Ace Combat Xi (iPhone)

Ace Combat Xi (iPhone)

Jet Set Radio Future Wall Graphics

Jet Set Radio Future Wall Graphics

New Games This Month: December 2009

New Games This Month: December 2009

Star Wars: The Old Republic (12-03-09)

Star Wars: The Old Republic (12-03-09)

Muscle March (WiiWare)

Muscle March (WiiWare)

The Scourge Project

The Scourge Project

Medal of Honor (2010)

Medal of Honor (2010)

 


Team Joystiq

 
Chris Grant
Editor-in-Chief, Email
James Ransom-Wiley
Managing Editor, Email
Ludwig Kietzmann
Senior Editor, Email
Andrew Yoon
East Coast Editor, Email
Randy Nelson
West Coast Editor, Email
Justin McElroy
Reviews Editor, Email
Justin Glow
Developer, Email

Joystiq Podcast

New episodes every Friday! Now playing: Joystiq Podcast 115, for Friday, Oct., 30.



Archive | RSS | iTunes