|Sony's PSP is just one of the new electronic devices that are again catching on with consumers.
Sony’s hot handheld PlayStation Portable, or PSP, also boosted earnings with a more than 40% sales gain year-over-year, although that was somewhat expected. The Sony Ericsson wireless phone division did well with a 15% increase in sales, with Walkman phones and camera phones specifically cited. In fact, the only negative on earnings was the Sony Pictures division, which posted losses of 10% year-over-year.
In further good news that rallied Wall Street, Sony upgraded its next quarter estimates to a gain of more than $600 million, from a previously projected loss.
The marketer will continue its cost-cutting efforts, including discontinuing several product lines such as its premium Qualia products that occupy stores-within-a-store inside several SonyStyle retail locations; its Aibo and Qrio robots; and its PDP, or plasma, TV products.
The positive financial news comes just eight months after Chairman-CEO Howard Stringer took the helm of the global giant, promising collaboration among divisions and cost reductions across the board as part of his turnaround plan.
“It’s taken them a while to figure out where they’re going and how to leverage their strengths to get there, and really, how you live in a whole different world,” said Steve Baker, analyst with NPD Group. “It’s been a struggle for all the Japanese companies ... but I think we can finally point to the fact that most of them have pulled themselves out of that tailspin.”
Sony stands poised for a similarly successful year in 2006 with heralded product releases coming, including high definition Blu-Ray DVD player/recorders, the PlayStation 3 gaming console, and the release of the movie based on the blockbuster book “The Da Vinci Code.”