We’ve been hearing for ages now that Sony was in a bit of a financial pickle, and that the PlayStation was just about the only thing making the company any money. We’ve been expecting that to change under Kaz Hirai’s “One Sony,” but it seems that the record keeps playing that same old tune. Sony has now issued a warning saying that it’s projecting an annual loss nearly twenty per cent greater than originally anticipated. Ouch.
According to Gi.Biz, Sony now expects to lose about $1.2 billion in its 2014 fiscal year. At one point, the company had actually expected to actually make a profit of nearly $500 million this year.
Sony explains the loss away as an unintended cost of its exit from the PC business. Sales of VAIO anything have effectively halted since Sony announced it was selling off the brand, and the company now has to write off excess components and inventory, and compensate suppliers for unused parts. Sony does, however, expect to start making money again in 2015, as it’s getting all of its restructuring costs out of the way.
“Consequently, 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,” the company said in a statement.
“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 company’s TV sales have also been cause for concern, with lower than expected sales of the company’s new Bravia range. That’s unfortunate, as their new models have some seriously low input lag, making them perfect for gaming.
Thankfully, the PlayStation side of the business is still doing fine, recording a profit of $172M in the last quarter of 2013. With over 7 million PlayStation 4’s sold so far and no real sign of that momentum stopping any time soon, at least we know Sony’s doing something right.
Last Updated: May 2, 2014