Sony CEO Howard Stringer has announced that Sony is looking to find new ways to generate profit in hopes of offsetting the performance of the PS3.
Following the expected but still dramatic announcement last week of a Q2 profit loss of more than 90%, Stringer's comments are not particularly surprising. The losses, driven by extensive recalls of Sony made laptop batteries, were made worse by slow PSP sales and heavy costs associated with the development of the Playstation 3.
Pledging a much better 2007 fiscal year, Stringer said, "We promised the margins for next year will be 5 percent and we have every intention of doing that. Considering some of the additional costs of PlayStation 3, we have to generate some excitement and profits from elsewhere in the company to offset the performance of PlayStation 3."
Stringer, who expects the PS3 to do very well in its second year, is looking toward strong growth in the consumer electronics and movie divisions of Sony to pick up the slack until the PS3 gathers a full head of steam. Claiming that the PS3 is already a "creative success", Stringer's comments suggest that the company remains confident that the heavy costs associated with bringing the new console to market will payoff.
The Playstation 3 launches in North America on November 17.