Playstation sales fell by 18 per cent overall during fiscal year 2008, as Sony Corporation reports a USD 1 billion loss

Sony's game devision saw the biggest decrease in sales during the last fiscal year, which has been blamed on unfavourable foreign exhange rates and the decline of Playstation 2 hardware sales.

However PS3 sales were over 10 million, a 10 per cent increase over the previous year, while PSP hardware sales were also slightly up at 14 million.

Overall Sony Corporation reported an loss of 98.9 billion yen (USD 1 billion) for the period.

The company predicts a 6 per cent drop in revenues during the next financial year, as net loss increases to to JPY 120 billion (US 1.26 billion).

The good news is that Sony's managed to significantly reduce manufacturing costs for the PS3, allowing it to slash operating loss by more than 50 per cent compared to the previous year.