On the Rebound, Sony Profits Soar

Despite Playstation 3 flop, technology giant prepares for recovery
By Zach Samalin,  Newser Staff
Posted Oct 25, 2007 2:12 PM CDT
Sony Corp. Corporate Executive Officer Nobuyuki Oneda announces its quarterly profit during a press conference in Tokyo Thursday, Oct. 25, 2007. Sony reported Thursday a dramatic improvement in profit...   (Associated Press)
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(Newser) – Despite big losses in Playstation 3 sales, Sony reported a slight quarterly profit jump, a signal that cost-cutting and downsizing have been effective economic spurs for the Japanese technology giant. Electronics profits increased 12-fold to $939 million, with sales, especially of digital cameras, up more than 20%, the New York Times reports, suggesting that the company is back on track.

Shedding some of its less essential components has been crucial. Two weeks ago, Sony unloaded its financial unit, which garnered $3 billion; and last week it announced the $800 million sale of some semiconductor operations to rival Toshiba. And with new flat-screen technology expected to rekindle television sales, the company's profits will more than offset its video game flop.