While things are looking up for Sony as a whole thanks to its involvement in other markets, the company’s gaming division is performing short of expectations.

According to second quarter financial results that ended in September, Sony saw a 43 percent increase in video game related sales over last year, while incurring an operating loss of 96.7 billion yen ($867 million).

Sony is blaming the losses on the “strategic pricing of PS3 at points lower than its production cost and the increase in PS3-related inventory write-downs recorded during the current quarter compared to the same quarter of the previous year.”

Financial Results [Sony]

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