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Sony is about to lose a lot more money than originally expected

Matt-liebl-profile

Posted by: Matt Liebl

Despite the wild success of the PlayStation 4, it's Sony's other divisions that are dragging the sagging company further down into the pithole of debt.

As reported by Games Industry, Sony has revised its expected losses at the end of the fiscal year, adding nearly $200 million in losses to its forecast. The company now expects a net loss of ¥130 billion / $1.27 billion,as opposed to the loss of ¥110 billion / $1.07 billion predicted in February.

Sony attributed the change in forecasts to "unforeseen expenses" tied to the sale of its PC business. Its PC sales in the fiscal year just ended on March 31 were lower than expected.

"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."

Other losses come from a shrinking in its foreign disc manufacturing business as the demand for physical media has shrunk faster than the company anticipated, particularly in Europe. 

Sony will release the results for its full fiscal year on May 14, 2014.

 
 

Tags: Sony

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