Sony Shares Fall on News of PS3 Delay in Europe
Shares of Sony fell after the company halved its forecast for shipments of the PlayStation 3 this year, delaying its introduction in Europe by four months.
The stock declined 2 percent to 4,950 yen, a six-week low, as of 9:50 a.m. in Tokyo. The delay was due to parts shortages for the Blu-ray DVD player included in the console, Ken Kutaragi, head of Sony Computer Entertainment Inc., said yesterday. Tokyo- based Sony said Japanese and U.S. sales are on track for a November release.
"The news is negative," Eiichi Katayama, an analyst at Nomura Securities Co. who has a "neutral" rating on Sony, wrote in a report today. "Even without the technological problems, the issues regarding the console's midterm profitability remain."
The operating loss at Sony's game division, which accounted for 13 percent of total revenue last fiscal year, widened more than fourfold to 26.8 billion yen ($229 million) in the quarter ended June 30, the company said in July.
Sales fell 29 percent as the PlayStation 2 wasn't able to hold its own against the Xbox 360, the company said.
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