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
Unavengedavo
May 2, 2014 at 08:40
Regarding the header alt text… I heard steroids can do that to you O_o
Alien Emperor Trevor
May 2, 2014 at 09:18
I don’t want to be the one to tell him it looks like he’s got genital warts.
Unavengedavo
May 2, 2014 at 09:48
Gama radiation does that to you O_o
Sageville
May 2, 2014 at 09:50
Hulk sausage fest….
Lord Chaos
May 2, 2014 at 08:50
“recording a profit of $172”
Bit too early in the morning for you Geoff?
Unavengedavo
May 2, 2014 at 08:56
But that equates to 17,626.05 Japanese Yen which is more I guess O_o
Exalted Overlord Geoffrey Tim
May 2, 2014 at 09:01
yes. yesit is. AND i have a cold…weekend in bed, yay!
Alien Emperor Trevor
May 2, 2014 at 09:20
That’s Geoff, busting lacist Asian stereotypes one number at a time. 😉
Exalted Overlord Geoffrey Tim
May 2, 2014 at 09:46
I’m shit at maths, I’m hairy like a badger and I have a tiny penis. All of the bad, none of the good.
Lord Chaos
May 2, 2014 at 09:48
And now there’s coffee all over my work screen.
Hammersteyn
May 2, 2014 at 09:05
Sony will need to do something sharpish. Can’t have just one division floating the company. Plus I know it will be bad news for the XBOX One gamers if the PS falls out of contention. Why would MS then hold back on all their policies they announced and everyone bemoaned. They’d flip the switch over night.
Verrayne
May 3, 2014 at 17:58
Sony’s Life Insurance division is making a lot of money as well 🙂
Hammersteyn
May 5, 2014 at 07:29
Say what?
Verrayne
May 5, 2014 at 08:16
Very few people in the west know about it. It only operates in Japan and for about 3 years it was the only division that has made an increasing profit (and the only profit making one 2 years ago).
Hammersteyn
May 5, 2014 at 08:56
*Mind blown.
Ultimo_Cleric N7
May 2, 2014 at 09:06
No surprise, especially after watching the last Spiderman movie….average compared to Cap America 2.
FoxOneZA
May 2, 2014 at 10:36
Engadget and the likes pickled on the fact that Blu Ray production is costing Sony more than the actual sales due to a decline with the need for disc based media in Europe and USA.
wally
May 6, 2014 at 18:59
I don’t understand why. They’re tv’s are fantastic, (especially for gaming) their cameras are so good everybody’s borrowing the tech, awesome cell phones.. What does a company have to do to earn some respect? Market?