Market Report – Sony in Red, Nintendo Profit Down

And in other business news… consumer electronics giant Sony made a $270 million loss last quarter, as a stronger yen and weakness in its TV business countered the impact of cost cuts.

Sony is restructuring its businesses, having closed 8 manufacturing sites and cut 16,000 jobs.

Still, the firm expects a full-year loss of over $1.2 billion, as its flat TV operations have been hit by cut-throat competition with Korea’s Samsung and its video game business trails Nintendo’s Wii in the key U.S. market.

Nintendo, meanwhile, reported a decline in its quarterly operating profit on slowing demand for its consoles, but has weathered the economic downturn relatively well compared to Sony and Microsoft.

Analysts expect demand for the Wii console to get a boost later in the year with Nintendo scheduled to launch major titles for the holiday shopping season.

Shares in Sony soared shortly before the earnings announcement Thursday, while Nintendo’s stock rose over 2 percent on the day.

(NTDTV)