Sony Corp. this week said the YouTube Application is now available for the Playstation 3.

The new app is optimized for the PS3 and includes functionality like Search, Subscribed Channels, and the ability to use a smartphone as a remote for the app.

Sony in July said the company’s game division, which includes the Playstation business, incurred a $45 million loss on revenue of $1.5 billion in the first quarter amid declining sales of consoles and handhelds.

By comparison, the division held a $52.3 million profit in the same quarter one year ago.

The Playstation 3 and Playstation 2 sold a combined 2.8 million units in the quarter, down from 3.2 million from one year prior.

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