Sony Warns Investors of Grim $2.1bn Loss
Corporation quadruples loss forecast amid problems with its smartphone business.
PlayStation 4 owner Sony faces a loss at the end of the financial year that is significantly worse than it previously expected.
The electronics empire initially forecast a $466 million net loss by the end of the current financial year, but has now informed investors that the projected loss has been revised to $2.14 billion.
Sony's quadrupled net loss forecast marks the sixth time chief executive Kaz Hirai has had to explain to investors that Sony's results are worse than expected. It is also the first time in the corporation's history that it has not paid an annual dividend to investors (essentially a payout for those who own shares in the company).
"This is the first time we've not paid a dividend and we feel that responsibility as management very heavily," Hirai said in a news conference on Wednesday.
The reason for the significantly deepened loss is Sony's struggling smartphone division, which Hirai previously said would be key to revising the corporation's fortunes.
Despite the grim market performance for Sony, its PlayStation subsidiary is performing well, most recently announcing that it had sold ten million PlayStation 4 systems in less than a year.
How much Sony's weakened value and market underperformance affects the PlayStation division is a matter for debate, though it's generally accepted that the games business cannot be immune to it.
Got a news tip or want to contact us directly? Email email@example.com