Out-Law / Your Daily Need-To-Know

UK games company Eidos has blamed a shortage of Sony PlayStation 2 consoles for a warning that profits for the year ending March will be significantly below expectations. Meanwhile, Sony today cut in half its net profit forecast, in part blaming PS2 production problems for lower than anticipated sales. Sony is also suffering huge losses incurred by Aiwa, its electronics subsidiary.

Sony’s games division lost almost £82 million in its latest results, compared to profits last year of around £337 million. The company has said it will double production to 20 million units next year.

In November, Eidos announced interim losses of £37.9 million. Its latest profits warning comes despite better than expected Christmas sales. In response to uncertainty over PS2 distribution, Eidos has said it will delay three new releases for the console until next year.

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