Sony is celebrating this morning after it was announced overnight that its share price has hit a five-year high. But while the Japanese company tries to put a rosy spin on the news, do not be fooled.
Because while the launch of the PlayStation 3 has seen some much needed revenue flood into the Sony coffers, its game unit is still operating at a £900m loss. And the reason Sony is celebrating is because it's predicting that by this time next year, that loss will be down to 'just' £200m.
Lack of games
And yet despite the renewed emphasis on games, Sony says it expects software shipments to fall below the 250 million mark. This is thanks largely to a falling interest in its PlayStation 2 console - which incidentally is still selling more units than the newer PS3.
So while the PlayStation 3 has been a real drag on Sony's otherwise good year, its other home entertainment products such as its LCD Bravia TV range have made a good profit.
Sony is predicting a £1.8bn operating profit for the next year. Providing the company doesn't have to recall another 10 million laptop batteries, this would be a real victory. We'll just have to wait and see.
