So, the dollar is not doing quite well these days. It's slowly going down and the Yen is slowly picking up. This means that Sony has somewhat lower production costs, and as a result they gain more profits. This in turn gives them the ability to do further reductions on their products (Mainly the PS3).

"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, according to MSN Money.

"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."

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.

StarJet via gamesindustry.biz »