Sony Set for Bigger Loss Than Previously Forecast

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Sony Set for Bigger Loss Than Previously Forecast
Not even strong PS4 sales can plug the holes...

Despite the fact that the PlayStation 4 is one of the hottest tickets in town right now, Sony has announced revised projections for the financial year that make for less than inspiring reading.

The company had previously expected losses of around $1.07 billion for this financial year, but those figures have been revised upwards to around $1.27 billion, marking an additional $200m loss. Although the PS4's sales have been incredibly strong, with the console selling well in excess of 7 million units since its launch in November, Sony is blaming the reduced demand for physical media for the dip, and these new figures make light of the predictions of a $489m profit this time last year.

Another factor has been the decision to offload its PC business, which was announced earlier this year, and the unexpected expenses that came with it. In an official statement, Sony said:

Sony expects to record write-downs for excess components in inventory and accrual of expenses to compensate suppliers for unused components ordered for Sony's spring PC lineup.

In addition, certain restructuring charges are expected to be recorded ahead of schedule. As a result of these factors, an additional total amount of approximately ¥30 billion in expenses is anticipated to be recorded in the fiscal year ended March 31, 2014.

The news will be of major concern to Sony stakeholders, and with the company's final figures for the financial year due on May 14th, they'll be hoping that things don't get any worse when the numbers have been fully crunched.



Sony Set for Bigger Loss Than Previously Forecast on ClickOnline.com
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