Games a big part of Sony profit woes

The Japanese PS3 price cut and slower-than-expected sales of the PSP are among the reasons being cited for Sony's announcement yesterday of a 62 percent drop in profit forecasts for the fiscal year ending in March. The revised numbers include a 200 billion yen expected loss for the games unit, nearly double the initial estimate for the fiscal year, and costs incurred during the recent recall of many Sony laptop batteries.

Sony also announced reduced shipment targets for the PSP, down from 12 million units to 9 million units for the fiscal year. The reduction mirrors a recent increase in DS sales expectations from Nintendo from 17 million to 20 million units for the business year.