Sony downgrades forecasts, expects US$1.3billion loss

May 2, 2014

While the Playstation 4 has been selling like hotcakes since it launched, the rest of Sony hasn’t been doing so well. The company today advised shareholders that its loss this quarter would be worse than predicted, with an expected full financial year loss of ¥130 billion (US$1.3 billion), down from ¥110 billion in February.

The losses are mostly derived from higher-than-expected costs related to the selling of its Vaio PC business due to the business underperforming greater than expected in February. In addition, Blu-Ray sales have  fallen faster than expected, due to contracting demand, especially in Europe. The double-hit leaves Sony with revenue of just ¥26billion, down from a predicted ¥80 billion in February.

Sony will announce its full-year results in two weeks, where it is expected to announce another full-year loss.