Slow PS3 Sales Drive Sony's Game Division to a Loss

As expected, Sony's game division posted a quarterly loss of US$237 million on Thursday off costly and slow PS3 sales.

Despite the losses, quarterly revenues were up 60 percent due to continued PS2 sales and a price reduction of the PSP. The company said that more than 70 percent of sales were on hardware and accessories.

While speaking to investors, Sony suggested it may be able to break-even on PS3 hardware within the next year due to lowered production costs of the Cell processor, the PS3 graphics card, and Blu-ray components.

Also of note, the company will now disclose hardware and software figures on units sold as opposed to their former and imprecise method of reporting units shipped. Nintendo does the same. Microsoft still reports units shipped.