Capcom Revenues Tumble While Sony Posts Operating Profit

Kris Erickson • May 10, 2010 • Comments ()

It was a day of good news for investors in the video game sector on Monday, as the effects of the economic downturn continue to have an impact in trailing financial reports. Last week, Japanese software publisher Capcom reported revenues much lower than expected, surprising investors. Following poor performance of games like Bionic Commando and Dark Void, net income dropped 73 percent to ¥2.2 billion ($23.6 million) for fiscal 2009.

Today Sony Corporation revealed that it has bounced back from significant losses in 2009 to post an operating profit.

Sony said it will post a net loss of Y41 billion, or $445 million USD, for the fiscal year ended March, compared with an earlier forecast in February for a Y70 billion loss. It expects a Y32 billion operating profit for the period, reversing its previous forecast for a Y30 billion loss. The turnaround has been largely credited to austere restructuring measures imposed by CEO Howard Stringer last year.

Under Tokyo Stock Exchange rules, companies must revise their profit forecasts as soon as they anticipate they will be 30 per cent above or below their previous estimates. That has forced Sony to rush out an outline of its results because of the newly improved outlook.

Despite increased competition and sluggish sales in 2008, the TV display market is enjoying strong demand and many LCD plants are running at close to capacity, the Financial Times reports. Sony has already said that it aims to sell 25 million new TVs this year. The launch of the 3D TV line is also expected to contribute to an increase in sales for 2010.