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It’s not just Nintendo that’s facing record losses for the last twelve months. Japanese gaming and technology giant Sony is expecting to record a $2.9 million loss for the last years, citing the poor exchange rate and ongoing demand issues as the reasons for its poor performance. Sales of Sony’s PS3 console were down over twenty percent, resulting in the significant drop in income.
Other factors also affected Sony’s earnings. The company’s TVs aren’t selling as well as they did in the earlier stages of the year, which could be due to poor economic conditions in major markets like the United States. Another reason for the sales slump is the ongoing development of the company’s next gaming console, which could potentially be hurting sales of its current PS3.
It’s normal to see a sales slump towards the end of a console’s lifetime, and most gaming companies push lower prices in an effort to boost sales and expand the console’s reach. PSP sales have dropped from last year’s levels, suggesting that the anticipation for new consoles and limited releases on the current generation of game consoles is fuelling the losses.
It’s worth nothing that this isn’t the first time Sony has recorded overall losses, which makes the situation a little less dire than the ongoing financial issues at rival Nintendo. However, given the explainable currency issues that are affecting all Japanese companies, we’re expecting to see both Sony and Nintendo rebound and finish out the next couple of years in good shape.