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Even Sony admitted that the launch of the PlayStation 3 contributed to a 68% drop in operating profits for the fiscal year that ended March 31.

"In the Game segment, there was a significant operating loss as a result of the sale of PS3 at strategic price points lower than its production cost during the introductory period," said the company in its annual report.
Sales for the twelve months were up 10.5 per cent to JPY 8.3 trillion, with net profit up 2.2 per cent to JPY 126.3 billion.
Sony also suffered its biggest quarterly loss for four years for the period from January to March 2007, with a net loss of JPY 67.6 billion.

However, the industry giant's report ends on a high note, with Sony expecting operating profits of JPY 440 billion for the current financial year ending March 2008.



Source:PS3 Not Doing Much Good for Sony