Electronics company Sony has reported a 15% drop in quarterly operating profit this morning, but raised its annual outlook closer to market expectations.
The drop in profits came after massive losses at Sony's game unit but this was offset by strong sales of flat screen televisions.
Heavy start-up costs for Sony's new PlayStation 3 game console were largely to blame for the losses at the company's game division. The cutting-edge technology used in the PS3 drove up production costs of the game machine, with some analysts saying that it could hurt Sony's bottom line for years to come.
Sony raised its operating profit forecast to $493.2m for the full year to March due to the strong growth in sales at its electronics division.
