New government accounting rules affecting the movie industry figured in part for a sharp decline in Sony's profits in its second quarter to $183.2 million from $430.2 during the same period a year ago. Sony owns the Columbia and TriStar film and TV studios.

The company said that the principal factors in the profit decline included the continued weakening of the yen and the costs of readying its new PlayStation 2 video game player. Meanwhile, Sony Pictures on Wednesday announced a reorganization, placing most of its senior managers under Mel Harris, who as president and COO of the studio is regarded as second-in-command to chairman John Calley and his heir apparent. As part of the reorganization Ken Lemberger was named the studio's co-president, and Jeff Blake, head of distribution, will also become head of marketing.

Source: Studio Briefing