Andre Yoskowitz
3 Apr 2008 15:00
Sony has reported that it intends to continue cutting production costs across the board on its goods as well as fulfill "more orders in an attempt to offset the reductions in export profits caused by the strengthening yen currency."
The current economy of the United States has seen the dollar lose significant ground to the yen over the past year and that fact could impact whether or not the electronics giant can offer another price cut on the PlayStation 3 gaming console in the near future. Last year, a price cut on the console spurred a sales growth beyond expectations.
"As to the situation of the US dollar's weakness in the medium to long term, we already have a strategy to deal with it," said Ryoji Chubachi, Sony president.
"We will lower our production costs as possible as we can and we will choose production sites to cope with the industry's weakness, and in the short term, we will try to accept more orders."
According to MSN Money, "for every JPY 1 gain versus the US dollar, Sony loses around JPY 6 billion (USD 58.3 million / EUR 37.5 million). In the past year the yen has moved from an exchange rate of 111 to the US dollar, to 102.5 - representing a loss of around JPY 51 billion (USD 496 million / EUR 318 million) for Sony."