Sony Corp. on Wed. announced that it incurred a $563 million loss in the fourth quarter of the fiscal year, citing PS3 development costs and under-performing sales.

Sony said that it shipped 5.5 million PS3 units in the fiscal year, below its internal target of 6 million units by Mar. 2007.

It now expects to ship 11 million units by fiscal Mar. 2008.

High-development costs for the PS3 have burdened the electronics maker, which received a 7 percent gain in the electronics sector and a 30 percent increase in sales in the Sony Pictures division.

Recent tallies have held the PS3 behind rival consoles, including Microsoft Corp.'s Xbox 360 and Nintendo Co.'s Wii video game system, the No. 1-selling home console in Mar. in the U.S.

Additionally, the PS3 has been unable to produce a new blockbuster hit for the console. Sequels to previous Playstation franchises are not expected to be released until late 2007.

The PS3 has sold 1.2 million units in the U.S. to date to garner a No. 3 position in home console sales.

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