Sony report improved profits

Sony report improved profits but future is somewhat bleak

Consumer electronics giants and the maker of the popular Playstation gaming consoles, Sony has posted a 68 percent rise in annual operating profit. They have gained mainly from on investment gains and improved sales of flat TVs.

However, profits in the coming year are expected to fall down comprehensively as the company would take bulk of the load of the start-up costs of its upcoming next generation gaming console, Sony Playstation 3.

The company has gained on their investments in its life insurance unit due to a rallying Japanese stock market. In addition, the high demand for its recently launched Bravia brand liquid crystal display has also helped them.

Sony is also seeing growth through the healthy sales of its PlayStation Portable gaming machine in addition to the Sony Vaio range of personal computing products. Sony Senior Vice President Takao Yuhara said in a statement during the presentation: “We believe that we can lower costs dramatically (on the PS3) through chip shrinkage and by cutting the number of parts but there is no way to avoid high costs in the first year.”