Sony profits fall 95 percent

[HURAKAN]

Sony profits fall 95 percent

* Story Highlights
* Sales were down 25 percent across the company
* Electronics and games especially hard hit, with sales falling 30 percent or more
* Sony warned last week it will close out fiscal year with operating loss of $2.9 billion

TOKYO, Japan (CNN) -- Sony blamed the global economic slowdown, increased competition and an appreciating yen for a 95 percent drop in third-quarter profits, as the company announced its results Thursday.

Profits for the quarter, which ended December 31, fell from nearly 200 billion yen ($2.2 billion) in 2007 to about 10 billion yen ($110 million) in 2008.

Across the company, sales were down 25 percent, but electronics and games sales were especially hard hit.

Sales of games, including the company's popular PlayStation series, fell 32 percent over the year. Sales of electronics decreased by nearly 30 percent.

The appreciation of the yen also cut into profits.

A stronger yen makes Japanese products more expensive or forces companies to lower their profit margins to keep prices the same.

Last week, Sony warned that it will close out the fiscal year, which ends March 31, with an operating loss of 260 billion yen ($2.9 billion), its first in 14 years. Video

[mf_dolphin]

Maybe they'll drop the price on their HDTV's I've already selected the Sony 46" TV I want for the livingroom so I'm just waiting on the right price now.

[LilGrimmy]

I can kind of see why. A lot of gamers are choosing the XBOX 360 over the PS3.

[Squarethecircle]

The PS3 was a failure, but I think Sony's beginning to come out with some interesting products and I really hope they they don't go under.. Their Minolta DSLR line is successful and they make some stunningly beautiful PCs. They're also making significant strides even now in display technology, and still set the standard in consumer screens.

[MGC]

Why is PS3 a failure? I was planning on gettion one for the blueray player alone.....MGC

[LilGrimmy]

Why is PS3 a failure? I was planning on gettion one for the blueray player alone.....MGC

PS3's are really slow when they are connected to internet. Updates are also really slow. And I think 360's are better thought out. You'd probably be better off just getting a blueray player if thats possible.