PlayStation2 to Lower Sony Profits

Sony Music Entertainment has revealed to Reuters that, due to the high exchange rate of yen and the major cost of launching a new game console, the company would see lower profits from the games business next year. The company stated that its net profit estimate is 31.8 billion yen (US$303 million), a revision from its initial forecast of 37.2 billion yen ($355 million).

Sony's games unit, Sony Computer Entertainment (partly owned by Sony Music Entertainment), has lowered its net-profit estimate from 52 billion yen ($497 million) for 1999/2000 from the previous year's 71 billion yen ($678 million).

The new console system from Sony, titled the PlayStation2, is scheduled to launch in Japan on March 4, 2000. A US release is planned for fall of 2000.