The Playstation 2 video game console. Sony slashed its full-year profit forecast in half, citing widening losses at its PlayStation 2 game division because of production delays and the cost of making the more advanced game box. The setback forced Sony to scale back the console's rollout in the U.S. and Europe.
Fewer shipments limit sales of software, which has wider profit margins.
Sony's difficulties have hurt video-game makers such as Eidos Plc and Electronic Arts, as consumers awaited the PlayStation 2 before buying new games. Rage Software on Monday said its fiscal 2001 loss would be wider than expected. The drop during the period ended Dec. 31 was in line with the estimates of four analysts surveyed by Bloomberg News. Third-quarter earnings were released minutes before the close of trading on Japanese exchanges. Eidos shares fell as much as 55 pence to 223p.