Sony boss looks for new ways to offset PS3 performance

Sony CEO Howard Stringer has conceded that the company must explore new ways of boosting profits in order to "offset the performance of the PlayStation 3".

Last week, Sony posted its Q2 financial results, revealing a drop in profits of more than 90 per cent - but Stringer is still confident of meeting margin targets.

"We promised the margins for next year will be 5 percent and we have every intention of doing that," he confirmed.

"Considering some of the additional costs of PlayStation 3, we have to generate some excitement and profits from elsewhere in the company to offset the performance of PlayStation 3."

Stringer added that Sony's consumer electronics division is performing well at present, and said the company's movie division is also set to pull in healthy profits.

He went on to concede that PS3 will perform better in its second year as software sales start to increase, but questioned the validity of rumblings about a delay.

"I think the idea of worrying about a delay in PlayStation is slightly strange to me. Every complex technology runs the risk of delays," Stringer said.

"The point really is that PlayStation 3 is already finished and has been tested in America and has been deemed a creative success. In the end that is what counts."

The PS3 is due to launch in the US on November 17, priced at USD 499 for the 20GB model or USD 599 for the 60GB version.