Sony has today reported a drop in its Q2 net profits to 1.1 billion YEN ($9.4 million), down 98% compared to Q2 2002. Sony attributes this drop to restructuring of its consumer electronics division (digital cameras, camcorders, mobile phones, PC's) which will take three years and cost a total of 1 trillion YEN ($8.4 billion). Other factors included the now poorly selling PlayStation2 and Trinitron TV's as well as competition from South Korea and China. Total sales were down 6.9% to 1.6 trillion YEN ($13.5 billion). On the upside however Sony still maintains its full year earnings estimate of a net profit of 50 billion YEN ($431 million). Original story from the BBC & CCN Business News websites.

Sony profits plunge 98% : BBC Business News

Sony profit slumps 98 percent : CNN Business