Sony Posts $1.1 Billion Loss; Dragged Down by Electronics Division
January 13th, 2009 | Written by Anthony Perez | Topic: PlayStation 3
The Associated Press is reporting that Sony will post an operating loss of 100 billion yen ($1.1 billion) for the fiscal year ending in March, marking the companies first such loss since 1995.
The blame falls mostly on the shoulders of Sony’s electronics division with sales dipping dramatically for the company’s liquid crystal displays and “other products.”
Though the report doesn’t specifically pin anything on the PlayStation 3 – and the PlayStation 3 is a part of Sony’s separate “Computer Entertainment” division – it is conspicuously vague. It doesn’t get into too many details about what specific products are hurting most aside from the liquid crystal displays, but rather lumps the entire electronics division into this ominous summary:
The losses are coming from the company’s core electronics division, which has long been a steady source of profits, the reports said. The Nikkei said Sony’s operating loss could balloon to as much as 200 billion yen ($2.2 billion).
Either way, it’s not a terribly good sign for the PlayStation 3 given the health of the company. If the entire company is doing poorly and your product isn’t necessarily pulling in a profit yet, then you are still a drag on a company with over a billion dollars in operating losses. You’re still contributing the the gallons of blood being lost every minute.
Does this signal the end of the PlayStation as Sony tries to recoup? Hell no. We’ve already addressed those bogus claims a while ago. Does it mean that Sony is in financial turmoil? Hell yes, though the recession will be felt by everyone.
via: The Huffington Post
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Comment by gizmodo on the November 8th, 2009 at 8:25 am
good…thats what they get for giving their customers corrupt firmware month after month and bricking ppl's ps3's…