Another characteristically all-over-the-map earnings announcement from Sony (NYSE: SNE), which reported quarterly revenue of $19.5 billion, a decline of 6.5 percent. Operating loss narrowed to $47 million and net income, helped by various investment gains, came to a profit of $290 million ($.28 per share). The core electronics business saw a dip of 5.4 percent, while the games business slid 6.4 percent to $2.6 billion. However, as is the case with Microsoft (NSDQ: MSFT) and the XBox, they're at that stage of the cycle where revenue from negative-margin boxes is being replaced with revenue from high-margin game titles, so as the total top-line is falling, the company predicts high profits from the unit in the coming year.
By Joseph Weisenthal