Sony books 2Q loss as TVs, PlayStation weigh on profits

The electronics manufacturer said it has also been hurt by the strong yen, and predicts a net loss for the fiscal year.

Sony said Wednesday it booked a deep loss during its fiscal second quarter ended Sept. 30, and now expects to be in the red for the entire year, weighed down by poor sales of its TVs and the strong yen.

The Tokyo-based company held its targets for its game business and said it is still on track to sell 15 million units of PlayStation 3 besides 6 million PlayStation Portable units in the fiscal year through March. Sony sold more of both devices during the July-September quarter than it did a year ago, spurred in part by price cuts during the summer, but it said the cuts also contributed to its drop in profits.

During its second quarter, Sony had a ¥27 billion (US$346 million) net loss, down from a ¥31 billion profit in the year-earlier period, even though sales were down just 9 percent. The company now expects to lose ¥90 billion for the fiscal year, after saying in July it could make a ¥60 billion profit.

Sony is ramping up for the launch of the new handheld PlayStation Vita console, but its main handheld competitor Nintendo has stumbled in its launch of the rival 3DS handheld. Nintendo was forced to slash prices less than six months after its launch earlier this year and has booked deep financial losses as a result. The Vita, due out in December in Japan, and in February in the U.S. and Europe, will feature advanced graphics and processing, a touch screen, multiple stick controls, and a rear touchpad.

Like other Japanese manufacturers, Sony has long struggled to make its LCD (liquid crystal display) TV business profitable against foreign rivals like Samsung and Vizio, and said that in the latest quarter its bottom line was hurt by higher costs per sale and lower margins. Executives have refused to consider abandoning the business, saying it is central to the company's existence as a consumer electronics manufacturer, though it is now restructuring and news reports say it may turn to buying more panels from outside manufacturers.

The firm has also struggled with the high yen, which hurt profits on foreign sales. In the first six months of this fiscal year, while the yen hit record highs, Sony derived over 70 percent of its revenues from overseas. It has also been hurt by the flooding in Thailand, which forced stoppages at some of its factories and the delay of product launches during the quarter.

One bright spot for the quarter was its movie business, which received a boost from the sale of merchandise rights to its Spider-Man franchise.

Join the PC World newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuesconsumer electronicsgamesfinancial resultssony

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jay Alabaster

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Armand Abogado

HP OfficeJet 250 Mobile Printer

Wireless printing from my iPhone was also a handy feature, the whole experience was quick and seamless with no setup requirements - accessed through the default iOS printing menu options.

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?