Sony’s financial report released today is grim news. The electronics division has posted potential financials ¥340 billion lower than their earlier forecasts. According to the report, ¥250 billion is due to a deterioration in the business environment brought on by the slowing global economy and an intensification of price competition, approximately ¥40 billion is due to the impact of the appreciation of the yen, ¥30 billion is due to additional restructuring charges and ¥20 billion is due to a deterioration in equity in net income (loss) of affiliated companies.
In the Game segment, presumably meaning PlayStation, operating income (loss) is expected to be lower by approximately ¥30 billion. Of this, approximately ¥15 billion is due to the impact of the appreciation of the yen and approximately ¥15 billion is due to lower-than-expected sales. We’re not financial scientists, but it looks like a net loss of 150 billion yen ($1.65 billion) and an operating loss of 260 billion yen ($2.86 billion) for the year.
With regards to the restructuring news, it appears the gaming division will be spared – according to Nikkei, Sony plans to close one of two domestic television factories and cut more than 2,000 full-time jobs in Japan. The Company also aims to eliminate roughly 3% of its domestic full-time staff, or more than 2,000 workers, by the end of fiscal 2009. In a separate cost-cutting move, executive- and managerial-level bonuses will be slashed next fiscal year.
PS3 Price cut? No PS4? Go wild, readers.