Sony posted a net loss of ¥10.8 billion for its fiscal third quarter ending December 31, 2012, which converts to around $115 million. That represents a huge reduction from a previous Q3 net loss of ¥159 billion, with the company's various cost-cutting strategies across the last year helping to turn the tide.

On the games front, however, Vita and PSP forecasts took a significant hit. The handhelds' combined fiscal-year estimate (March 31, 2012 to March 31, 2013) is now at 7 million, down 30 percent from the 10 million projected in November, not to mention the initial projection of 16 million. Sony sold 2.7 million of the handhelds across the third quarter, but in the last three months of its fiscal year the company only expects to sell 1.3 million.

The PlayStation division endured a tough third quarter overall, with operating income dropping year-on-year from ¥33.8 billion to just ¥4.6 billion, or around $49 million. While Sony noted the previous Q3 was offset by the Vita's launch in December 2011, the company admitted this year's figures took a hit because of decreased sales across all its gaming hardware. The Vita's "slow penetration" was noted as a particularly important issue.

The combined fiscal-year projection for PS3 and PS2 remained steady at 16 million, with Q3 sales of 6.8 million for the two consoles. Software-wise, 61.7 million PS3 and PS2 games were sold across the third quarter, while PSP and Vita game sales came in at 8.9 million.

This article was originally published on Joystiq.