Fiscal year 2010 was a watershed year, during which we realized substantial benefits from the decisive transformation process initiated in fiscal year 2008, undertaken with the aim of improving our operations and creating a foundation for future growth.
Notwithstanding the adverse influence of foreign exchange rates and the earthquake, our operating results in fiscal year 2010 were, on the whole, very encouraging. Consolidated sales and operating revenue remained at the same level as the previous year, reflecting the sharp appreciation of the yen during the period, but increased 6% year-on-year on a local currency basis.
Consolidated operating income reached 199.8 billion yen for the fiscal year, more than 6 times that of the previous year, despite the negative impact of foreign exchange rates. In contrast to the previous fiscal year, when robust results in the financial services and entertainment businesses drove our recovery from the recent global recession, the noteworthy factors behind the increase in consolidated operating income in fiscal year 2010 were the improved results in the electronics and game businesses, while we also enjoyed continued profit contribution from the financial services and entertainment businesses.*
We recorded a loss attributable to Sony Corporation's stockholders, due principally to recording approximately 360 billion yen in valuation allowances against deferred tax assets at Sony Corporation -- on an unconsolidated stand-alone basis -- and its national tax filing group of subsidiaries in Japan. However, this valuation allowance was a non-cash charge and had no impact on consolidated operating income or cash flow.
We continued to implement transformation initiatives to reform our operational structure with a priority on profitability and speed. These transformation initiatives included continuing headcount reduction programs, advancing the rationalization of manufacturing operations, shifting and aggregating manufacturing to lower-cost countries, and, especially in our LCD television business, utilizing the services of third party original equipment manufacturing (OEMs) and original design manufacturing (ODMs). Our fiscal year 2010 operating performance confirms that Sony's transformation initiatives have contributed positively to our operating performance. Furthermore, we will now be in a position to apply the cash flow generated by our improved cost base to the following focus areas, to spur future growth.
Sony's focus areas can be distilled into four key themes, "Networked Products and Services," "3D World," "Competitive advantages through differentiated technologies" and "Emerging markets," and they will drive our growth going forward. We look forward to reaching milestones in all four in fiscal year 2011 and beyond.