Sony today (5/14/09) announced that amid a drop in sales has had a loss of 98.9bn yen ($1.04bn; £685m) at the end of March compared to it's profit of 369.4bn yen last year.
Sony blames the currently strong yen and global economic downturn for the loss of profit this year. Sony had cut around 8,000 jobs and closed 10% of it's factories earlier this year in an attempt to slow the loss in revenue.
This current loss in profit is not unexpected though it is better than what Sony had originally predicted in January, which they said would be a loss of 150bn yen.
Sony's stocks closed today down 6.8% at 2,400 yen ahead of the results.
Sony is predicting a net loss for the current financial year of 120bn yen and as a result will continue to cut jobs and close factories. Analyst say that the only way for Sony to truly recover from this downturn would be to create a popular electronic as they currently have "no number one product" with the PS3 only being number one in Japan and slowly growing in several other countries.
However experts are agreeing that is currently a small blip and does not reflect a loss in popularity in the Nintendo Wii console due to the increase in profit that Nintendo announced earlier in the month. Time can only tell if this giant will recover or fall under the current economic downturn.
What do you have to say about this? Will Sony be able to make up for this loss and recover or will it fall?
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