Following Sony's earnings announcement last week, which saw operating losses more than double at the company's game division during the second quarter, Sony today stated that operating loss at the game division could exceed 100 billion yen ($876 million) for the fiscal year ending next March. The company had originally forecast an operating loss of about 50 billion yen.

The expensive PlayStation 3 remains the root cause of these continued losses. Last fiscal year, Sony's game division took a beating thanks to the PS3. Operating losses totaled almost $2 billion. As PS3 chips and components get reduced in size and become easier to mass produce, costs will come down. Sony said last week that it's aiming to at least break even on the game division for the second half of the current fiscal year.

On the plus side for Sony, the company's electronics division will likely post an operating profit margin of five percent in the year ending next March, thanks largely to increased sales of its LCD televisions, cameras and more.