Despite the fact that Sony believed its powerhouse piece of hardware would be able to ride to wave of negativity surrounding it due to the high pricepoint, it seems the company was wrong. As a result, the latest financial reports look extremely bleak.

Sony has reported that for the first quarter of 2007 it has been hit with a large loss in earnings due to intense competition from competitors Microsoft and Nintendo, with the Xbox 360, Wii and Nintendo DS. The Japanese-based Sony Corporation, which is currently ranked as the world’s number two when it comes to the seller of consumer electronics, has gone on record to confirm it has received its largest loss in four years, especially as the Wii has quickly taken control of the market not just in Japan, but across all major territories.

In an attempt to turn around this negative news, though, it followed up with word that actual profit margins will more than double this year for sales of its Bravia television units, along with narrower losses on the PlayStation side. In the run up to the end of the fiscal year, 31st March, 2007, the net loss amounted to 67.6 billion yen (€415 million or $562 million), which is a considerable amount more than last year’s loss of 66.5 billion yen. Again, though, the company has tried to save face by pointing out that the net profit over that period of twelve months has actually risen by two percent to 126.3 billion yen.

Until the PlayStation 3 starts to recoup some of the money it is currently causing Sony to haemorrhage, it seems the company will be more than happy to fall back on the massive success currently being had in other divisions, for example its movie side, where Spider-man 3 was able to break Box Office records when hitting the silver screen in North America earlier this month.

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