Sony's gaming division posts a loss, expects lower sales of PS3 and Vita

The PlayStation division hasn't performed up to Sony's expectations. In its latest quarterly earnings report, the electronics giant reported lower sales of hardware and software of the PSP and PS3, causing a sales decrease of 14.5% year-on-year.

As such, the gaming division of Sony posted an operating loss of 3.5 billion yen ($45 million), compared to an operating income of 4.1 billion yen in the same quarter last year. In addition to lower sales, "unfavorable foreign exchange rates" have also contributed to the loss.

Things aren't looking up for Sony, either. According to their sales forecast, annual sales are expected to be "significantly lower." Sony anticipates to sell 16 million PS3/PS2 systems, dropping from the 18 million sold last fiscal year. Their portable electronics forecast, which includes both PSP and Vita, has dropped from 16 million to 12 million, likely reflecting slower than anticipated demand for Sony's handheld offerings.