Sony's profits have doubled, which is great and all, because they have decent electronics that barely let people down, such as LCD Televisions and digital cameras. Surprisingly enough, it's the PS3 that's losing ground in terms of their gaming department.

Though the game division increased by 60.5% compared to last year, Sony's PS3 is costing them greatly...as the parts that make up the PS3 cost them more than their retail price. Something we already knew, but with the $100 price cut recently, they really aren't getting any profit out of it.

Electronics giant Sony has announced Q1 financial results showing that profits have more than doubled, thanks to a depreciating yen against the dollar and Euro, and strong sales of LCD televisions and digital cameras. However, Sony also said its "strategic pricing" of the PlayStation 3, which is lower than its production cost, is leading to game division losses.

The company reported a ¥66.5 billion yen ($540 million) profit for the quarter, up from ¥32.3 billion yen ($270 million) in the same quarter of the previous fiscal year, adding that sales of semiconductors to the game division assisted the boost. Overall revenue was up 13.3% to ¥1.98 trillion yen ($16.6 billion).

The company commented that revenue in its game division increased 60.5% compared to the same quarter of the previous fiscal year, attributing the increase to sales of Playstation 3 consoles. Its overall increase in sales and operating revenue was 13.3% over the same quarter in the previous fiscal year.

However, Sony also admitted operating losses in the game division, attributed primarily to "strategic pricing of PS3 at points lower than its production cost", a key phrase admitting that the individual parts making up the PlayStation 3 cost the company more than their current combined retail price.

Storm via gamasutra.com »