Daniel Ernst (Hudson Research Square): Concerning TV, you discussed about a faster like-for-like reduction in prices. Can you comment on the blended price decline factoring in the mix of larger screen sizes and the mix of 2008 screen models?

Nobuyuki Oneda: The price deterioration of the big screen size is around 25% to 30% and the mid to lower size is 20% to 25%. The average blended trailing decline is probably 25% though it should be noted that the price deterioration happened earlier than we expected.

Ben Atkinson (Gagnon Securities): Why was the tax rate significantly up and what are the expected tax rates for current full year and for the next year?

Nobuyuki Oneda: The normal tax rate for Sony consolidated is about 41%. However, due to sales of Sony Financial Holdings (SFH) stock this year, the book value of SFH is lower than the book value of the consolidated company. Thus on a consolidation basis, SFH’s value of the stock has increased whenever it created the profit in their operation year-by-year. On the other hand, on Sony Corporation’s books, the profit was not reflected because of Japanese regulation. The tax is therefore imposed based upon the lower book value of Sony Corporation.

Ben Atkinson (Gagnon Securities): Electronics inventories are up 5% year-over-year. Can you comment further on Electronics and overall company inventory?

Nobuyuki Oneda: The inventory level is normal and definitely stabilizing at this moment.

Melissa Otto (American Century): Can you give more detail on Games software current performance and going forward?

Robert Wiesental: There is a bunch of anticipated titles that are going on sale in Japan such as Sega, Metal Gear Solid 4: Guns of Patriots and Devil 4, which will be sold by Capicom. Later this spring there will be lot of online services coming in. The PS3 is already doing a lot of business in terms of downloads, both for games that provide a sense of promotional value and quick action games. Gran Turismo 5 Prologue is another important title doing very well. The key part is that the current titles are taking advantage of the full horsepower of the PS3. Some titles were not in full HD and several of them were taking advantage of interactive features. Right now the number of titles that we have include 67 in Japan, 105 in the U.S. and 86 in Europe and this is for the period ending December.

Tuna Amobi (Standard & Poor’s): Can you provide some indication of the expensed and capitalized costs for the Blu-ray technology?

Nobuyuki Oneda: Most of the investments into Blu-ray are expensed. As an indication, we are still losing money from the hardware business because it is still in its early stages. The quantity is not big and our operation from the hardware business is negative. However, we are making some profit from the Blu-ray software disc itself.

Tuna Amobi (Standard & Poor’s): Can you comment on your upcoming pipeline for the film division and what the position is with Spiderman 4?

Robert Wisenthal: In terms of the upcoming titles for the remainder of the year, we have Vintage Point with Forrest Whitaker, Dennis Quaid and Michael Fox. We are also very excited about 21, which was the title under which we obtained the MGM transaction with Kevin Spacey. Going forward, our big film for the remainder of the new fiscal year includes Adam Sandler’s You Don’t Mess With the Zohan comedy; Hancock with Will Smith in July and Quantum of Solace with Daniel Craig in November. Angels & Demons has been pushed to May 2009.

In terms of Spiderman 4, we haven’t got much on that yet though it’s one of the most valuable franchises. Spiderman 3 was the biggest of the three so far and we are looking forward to a lot more activity with that franchise, both in terms of film and television.

Tuna Amobi (Standard & Poor’s): Which markets most adversely affected your PS3 sales to the extent of a downward shipment revision?

Nobuyuki Oneda: Roughly speaking, the PS3 sales volume of about 10 million units is probably split as one million for Japan, four million in Europe and 41/2 million in the U.S. in terms of sales to date.

Luc Mouzon (Credit Asset Management): Given your regional exposure and associated negative trends in Japan and the U.S., do you anticipate depressed Japan and U.S. sales for the first quarter?

Nobuyuki Oneda: Our original forecast at the end of October was ¥150 to $1 and €1 to ¥160 and because of the recent appreciation of the Yen, we have now revised the fourth quarter forecast to $1 to ¥105. The euro is five Yen stronger whilst the dollar is 10 Yen stronger. The trend could continue for some while.

Unidentified Analyst: What is the quarter LCD TV profits given that it was a $100 billion loss last quarter?

Nobuyuki Oneda: The LCD TV third quarter profit is about $70 billion.