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Sony Expects Game Business to be Profitable This Fiscal Year, Relying on PS3

September 20, 2012 Written by Sebastian Moss

Sony Corp is hoping that the PS3 will help bring the company’s game division back into the black by March.

“I think we will be profitable this year,” Andrew House, head of Sony’s gaming division told Reuters in an interview, continuing: “We have a growing installed base, growing connectivity of the PS3″.

In August, Sony cut its forecast for sales for Vita and PSPs this business year to 12 million from 16 million due to low Vita sales, but the game unit is still maintaining its target of an 80 billion yen operating profit on sales of 1 trillion yen in the year to March 2015. 2015 is also set to mark Sony’s great turnaround under Kaz Hirai’s ‘One Sony’ initiative. But investors remain concerned that Sony will struggle to achieve their goal, especially since Hirai has already cut Sony’s earnings outlook since he took over in April.

The new PS3 might not end up selling many more units due to its similar price, but the presumably cheaper production costs should help Sony’s profit margins.