Sony Predicts $1.2 Billion Loss for the Fiscal Year

Sony is in dire trouble this year it seems as they just announced a massive $1.2 billion loss is expected for the year.

According to the Wall Street Journal:

Sony�s dismal second-quarter earnings confirmed the trend Wednesday: The Japanese conglomerate now says it will lose nearly $1.2 billion in the fiscal year through March, largely because of its loss-making television business and the impact of the yen�s strength against the euro. Intense competition from manufacturers in China, South Korea and Taiwan and declining prices in this segment mean that margins are as thin as flat-panel TVs. Once this year is done, the company will have lost almost $8.5 billion from selling televisions over the past eight years.

The problem might be that their televisions are generally priced higher than others, there�s a lot of competition in the market and they seem slow to update features at times.

This is unlikely to affect the Playstation division any time soon as much of the profit in the company comes from a diverse portfolio of things like film, music and financial products. I imagine they�re not doing too poorly in the video game area as well.