Report: Sony to post first loss since '95
Japan's Nikkei business news says beleaguered electronics giant will end fiscal year with $1.1 billion operating deficit.
Dour economic tidings continue to pile up for PlayStation 3 purveyor Sony. Citing Japanese business news service Nikkei, Reuters reports today that the besieged Japanese electronics company is girding itself to post its first full-fiscal-year operating loss since 1995, and only the second since the company went public in 1958.
According to Nikkei's report, Sony's operating loss for its fiscal year ending March 31 is expected to settle at around ¥100 billion ($1.1 billion). The figure stands in marked contrast to the company's forecasted operating profit of ¥200 billion ($2.2 billion). Nikkei notes that Sony's losses may soar to as high as ¥200 billion ($2.2 billion), depending on the company's performance from now until the end of its fiscal year.
The clearest indication of Sony's turbulent economic situation came in December. At that time, the Japanese company announced that it would slash up to 16,000 jobs as well close about 10 percent of its manufacturing facilities to save approximately $1.1 billion by the end of its fiscal year. Sony also said that it planned to cut investment by as much as 30 percent in its core electronics operations by withdrawing from unprofitable and noncore businesses.
Last week, The Times of London reported that Sony would soon implement "sweeping" and "sacred-cow-slaying" changes in the lead-up to its third-quarter fiscal report, which is expected January 29. Citing "company sources," The Times said that Sony was likely to expand upon the previously announced staff reductions, though no specific divisions were named as targets. Sony later refuted this report, saying that it had no plans to enact any further cost-cutting measures this month.
As noted by Nikkei, Sony's previous full-year operating loss came during its fiscal year ended March 1995, when the company took a substantial one-time charge related to its film business. As such, the expected loss would be the first attributable to the company's mainstay electronics division.
544 Comments
-
covenan
-
ravemonkey78
-
retospectre
-
e1337prodigy
-
rmoorevtps3
-
Stonecoldsam316
-
TehUndeadHorror
-
Taosaurus
-
Compilation
-
Jose_Rizal
-
HiroArka
-
bennae66
-
bennae66
-
doc18
-
XanderZane
-
Jose_Rizal
-
bob1387
-
Sil3ntStRik3R
-
zacattack214
-
hatieshorrer
-
zacattack214
-
Arkady_Husky
-
jtthegame316
-
bluefishhead
-
team_deathtoall
-
swimbearuk
-
Darrius117
-
Generalmojo
-
StarlightHunter
-
darin025
-
Darrius117
-
deadkingdg
-
Duck454545
-
brendanhunt1
-
brendanhunt1
-
darin025
-
bobthegoat2001
-
Stonecoldsam316
-
Andy9Beans
-
HiroArka
-
Shivercraft
-
berzerker92
-
LarSam
-
Darth_Doggy
-
Autolycus
-
olympicheropaul
-
spiritualchemy
-
JustWiicredible
-
Enforcer246
-
dasmx
Subscribe to GameSpot's YouTube Channel
Hot Stories
Newsmakers
-
Mortal Kombat developer to diversify in 2012
NetherRealm creative director Ed Boon says there's an "assumption" another Mortal Kombat game to come, but wants to work on new IPs on multiple formats, genres. Full Story
- Posted Jan 30, 2012 8:17 am PT
- 59 Comments
Featured Stories
-
Star Wars: The Old Republic denounced for gay relationships
Family Research Council says BioWare has "gone to the dark side" with promise to include same-gender romance in MMO game. Full Story
- Posted Jan 30, 2012 10:46 am PT
- 528 Comments
-
No new Xbox in 2012 - Microsoft
Company's French marketing manager says Microsoft not ready to roll out new console this year, won't compete with Nintendo and the Wii U. Full Story
- Posted Jan 30, 2012 9:51 am PT
- 360 Comments
-
Kingdoms of Amalur: Reckoning online pass unlocks seven quests
New copies of 38 Studios' fantasy RPG come bundled with code to download House of Valor faction questline; studio says it was "always intended" to be DLC. Full Story
- Posted Jan 27, 2012 2:53 pm PT
- 346 Comments
-
Sony sweetens PS Vita 3G deal
$300 version of new handheld will now include free 8GB memory stick, PSN game, AT&T 3G data plan access; $350 First Edition preorders to receive just the PSN game and data plan. Full Story
- Posted Jan 27, 2012 2:24 pm PT
- 247 Comments
-
Nintendo considering new name for Wii U - Report
Underwhelming reaction and concerns of customer confusion supposedly have the Mario maker weighing its options for a rebranding before this year's E3. Full Story
- Posted Jan 27, 2012 11:12 am PT
- 517 Comments
Related Game
PlayStation Home
Follow for the latest news, videos, & tips from experts & insiders
- Publisher(s): SCEA
- Developer(s): SCEE London Studio
- Genre: Puzzle
- Release: Dec 11, 2008 (US) »





