Tokyo-Releasing its results for Q3 2007, Sony reported its Games unit revenues grew by nearly 43% to $US2.1 billion, but the bottom line was a loss of $841 million. In the first six months of Sony’s financial year, the company shipped about 2 million PS3s, and it forecasts another 9 million units will be shipped in the remaining six months. “The key issue for Game is the lack of profitability. Operating losses widened to 39.7% of sales, which is dreadful,” notes Carl Gressum,senior analyst at research firm Ovum. “Software sales are down for the PS2 and the PS3 is a loss maker and Sony seems to build up inventory in the channel for the holiday season. If the holiday season this year does not put the PS3 underneath the Christmas trees around the world, we can expect weaker sales in the coming quarters. Also worrying is when will Game be able to report positive bottom line contribution? The cash cow PS2 is in decline on software, the PSP has yet to really go mass market, and we doubt more and more that it ever will, which leaves us with the massive loss maker PS3.”