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Sony's TV Losses Continue to Dim Its PlayStation Video Game Star

Stocks in this article: SNE MSFT FB

NEW YORK (TheStreet) -- Sony (SNE) enters the E3 show in Los Angeles on a winning streak.

Thanks in part to the success of its PS4 and in part to the failure of Nintendo's Wii U, Sony has retaken the lead in video console sales from Microsoft (MSFT). At today's press event it is expected to roll out new titles and discuss its PlayStation Now streaming service.

Sony should also be favored to win the fast-growing China market, which is now opening up, given Japan's proximity to China.

CEO Kazuo Hirai, who ran the video game unit before becoming CEO of the parent company, is also expected to discuss Project Morpheus, a 3-D headset announced in March that will compete with Facebook's (FB) Oculus Rift.

But Sony's stock continues to be a loser, down about 17% over the last year. Shares were changing hands Monday morning at $16.32, up 22 cents from Friday's close.

The long-term decline is because the company as a whole continues to lose money, $1.28 billion for the year ending in March. I've called it a slow-motion train wreck. 

Hirai now says he is making hard decisions.

Before Hirai became CEO, entertainment executive Howard Stringer was the CEO, and movie budgets were kept in check, while the unit continued to grow.

Now budgets are ballooning -- The Amazing Spider-Man 2 cost $225 million -- but moviegoers may be tiring of superheroes and the return on that investment is lower.

As a result, Hirai is cutting budgets and has appointed Sony's former general counsel Nicole Seligman to the newly cr

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