Analyst Note
| Kazunori Ito |Although its game business continued to struggle, Sony delivered an impressive result for the September quarter. We believe that Sony was able to minimize losses from ongoing headwinds through its excellent management and operational capabilities, and as a result, was able to fully benefit from the solid demand for image sensors, digital cameras, and streaming music. We will revise our earnings forecasts as well as our fair value estimate after meeting with the company later this month, but we do not expect to make any material changes to our numbers. We still see Sony’s shares as undervalued, and believe the bottoming out of the PlayStation Network’s active user base will be the catalyst for the stock price.