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Sony’s Profit Falls; Film Unit Has Loss

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From Associated Press

Sony Corp.’s profit tumbled 25% in its fiscal second quarter as research costs in its video game division and losses from movie box office flops offset strong sales of digital cameras and cellphones.

The Japanese electronics and entertainment giant is trying to turn around its troubled electronics sector, battered by the emergence of cheaper Asian rivals.

Sony said its earnings fell to $301 million for the July-September period. Sales edged up 0.4% to $16 billion, the first sales increase for the Tokyo-based company in three quarters.

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Operating profit in Sony’s electronics segment jumped 36% to $327 million. Sales dipped 1.4% to $11 billion. Sales of camera-equipped cellphones and digital cameras were strong, but falling prices hurt revenue.

Rising research and development costs, mostly in chips, sent operating profit in Sony’s game business plunging 91%.

The film division, Sony Pictures, lost $42 million. Disappointments such as “Gigli” offset the more popular “Bad Boys 2” and “S.W.A.T.” The unit’s sales totaled $1.7 billion, up 1%.

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