Bumper results for Sony, but will it turn around PS3?

Sony has rebounded from its earlier lacklustre performance to post second quarter profits of ¥73.7 billion ($641 million), fuelled by strong gains in its movie and consumer electronics units.

But what of prospects for its next gen games console, the PlayStation 3?

So far, just 5.6 million units sold worldwide, with the company likely to miss its current financial year target of 11 million units. Plus the double whammy of outperformance by Nintendo’s Wii and just a handful of games titles published. Revenues in Sony’s games division were up 43% at $2.12 billion, however, losses doubled to $841 million.

It’s widely documented that Sony loses money on every console shipped, so even with the $100 price cut for the U.S. version and a lower-priced entry level model for European prospects, all hinges on must-have games being released by the major publishers.

Sony is also getting its ducks in a row when it comes to attracting consumers beyond the hardcore gamers it knows will snap up the consoles, with or without hitting sweeter price points. A new version of the device which morphs the PS3 into a broader home entertainment proposition, combining a TV receiver and DVR, goes on sale in Europe early next year. The company is also ramping up investment in Home, its virtual world which adds everything from community features, through to opportunities for upselling its other entertainment franchises; due to emerge from its beta chrysalis during 2008.

While attractive pricing is an obvious weakness of the PS3, Nintendo’s gamble of producing a lower-specification console which retails for a significantly lower cost has proved astute. Critically, the Wii has cut through to the women’s market, not the traditional preserve of hardcore gamers.

Evidence is emerging that PS3 may be starting to buck the downward trend, with the latest sales figures for European markets showing stronger sales than Xbox 360. There remains, however, a huge gap to close on the best selling Wii.

As disappointing as PS3 sales have proved to date – and in spite of CFO Nobuyuki Oneda’s confirmation that the year one sales target is unlikely to be met – The Street obviously believes overall group performance to be in rude health, with company shares closing up 6% on the day.

European Sony Playstation 3 to get DVR, U.S. version may follow

After initial speculation earlier this month, following comments made by Warwick Light, Sony Computer Entertainment head for New Zealand, the company has today confirmed that the European version of the console is to get a digital terrestrial TV tuner and DVR from early next year — a prediction I first made seven years ago — with the possibility of a U.S. version to follow.

The PS3 will be spec’d with two tuners, allowing users to watch one show, while recording another, one-touch series recording and easy transfer to portable devices, such as the PSP. No disclosure was made on the likely hard disc size or how this may equate to storage capacity.

An official press release has yet to appear on Sony Computer Entertainment Europe’s site. But coverage in The Guardian states that the first countries to get the PlayTV-enabled PlayStations are the U.K., France, Germany and Spain. Forbes adds that Italy is also among the first countries to get the new device.