Sony Struggles as Nintendo Soars

Sony's money-losing video game business was a drag on first-half earnings, while Nintendo's profits in the period nearly tripled from the previous year

Day by day, Sony's (SNE) core electronics business is looking less like a white elephant. On Oct. 25, the Japanese company swung to a profit in the latest quarter, vs. the year-earlier period, thanks to brisk flat-panel TV and digital camera sales. It also raised its annual profit and sales forecasts from July. In the fiscal year ending March, 2008, Sony now expects overall operating profits to rise fivefold, to more than $3.9 billion, on a modest 8% gain in sales, to $78.8 billion. Both these numbers are 2% higher than earlier estimates.

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