By Jonathan Davies

Sony has reported losses of 136bn yen ($1.2bn; £762m) for the three months to September.

The Japanese electronics giant said the majority of the losses could be attributed to its struggling mobile phone business.

But the losses weren't as big as expected. And Sony did report an increase in sales of 7.2% to 1.9tn yen in the period, compared with last year.

It said that the rise in sales was mainly due to a "significant increase" in games and network services "reflecting the contribution of the PlayStation 4".

Sony sold 3.3m consoles in the July-September quarter, generating £1.73 billion in revenue and £122 million in operating profit.

In September, Sony issued a warning that losses may be more than four times higher than initially forecast. It earlier said it expected losses to be around 50bn yen, but that figure is more likely to be around 230bn yen.

Sony is losing ground on its rivals in just about every area. It announced plans to halt production of its Vaio laptops, Xiaomi has won customers from Sony's mobile phone business and its television unit is losing out to Samsung.

Two years ago, Sony chief executive Kazuo Hirai promised to turnaround the company's electronics business. But earlier this year he admitted that it isn't likely to return to profit until 2015.

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