Takao Yuhara, Sony’s senior VP, has told the Associated Press that losses in the gaming division for the fiscal year to March would be over the ¥200 billion (€1.2bn) the firm had forecast.

Plus, he added that annual losses from Sony Computer Entertainment (SCE) will be far worse than previously projected.

“In the PS3 business, production was very tight, but we knew the market wouldn't wait,” Yuhara said, adding that, “Such factors, including price cuts to some extent, are factored in [under our plan to break even in fiscal 2007/2008].”

So PS3 price cuts may well be on the cards later this financial year (ie sometime before March 2008) after all?

Yuhara did stress that no decision had been made, but admitted that a price cut would make strategic sense in order to encourage global sales.

Yuhara also defended the decision to cut the cost of PS3 before its launch in Japan last year. He said the price reduction was an effort to respond to hard-core game fans' expectations, and the move helped ensure a smooth rollout.

(Source: MCV)