Reuters: Sony may post $1.1 billion loss

Reuters reports that Sony Corp "will likely" have an operating loss of approximately $1.1 billion this year, its first in 14 years. According to the wire service, some global economic slump that's going on right now has caused inventory for the company to stack up in all its divisions and prices to fall.

It was already expected that Sony would be cutting thousands of jobs and closing manufacturing plants, but an analyst quoted in the report believes the company will now "further accelerate its restructuring." There's no word on how the PS3 and PSP divisions of the company will be affected. The silver lining in this for consumers is that the PS3 is rumored to receive another price drop in the next few months.

Reader Comments (68)

Don't forget that they get a royalty for every Blu-Ray disc manufactured, and that their flagship player is the PS3 which reportedly should be turning a profit this year due to the lower cost to manufacture it. BD's are coming down in price just a bit; look at The Dark Knight for ex., so Blu-Ray might actually do some good for them this year.

levi-

u also understand EVERY blu ray drive uses codec which is patented by microsoft and microsoft makes money on every blu ray player sold too??

It's sorta troubling to see so many examples of how troubled the worldwide economy is everyday. I very much doubt this will spell the end of Sony's video games or consumer electronic division. However, it's still very troubling to see Sony in trouble nonetheless.

It troubles me to see how often you used a variation of trouble in your comment.

Troubling indeed, my smartassed friend. lol. Troubling indeed... quite full of trouble.

....trouble.

+1 for you good sir.

That's a lot of money to lose. I don't like or buy sony products so its doesn't bother me in the slightest.

Now, back to my epic sized Samsung TV.

Tables have turned on Krazy Ken -- now Sony employees themselves will need that second job.

This is mostly Sony's other divisions, the gaming division isnt in trouble. The same thing is happening to Microsoft. Other companies are doing the same, it means people losing jobs so its not a laughing matter.

With those losses they can't afford a price drop, that and the share holders will be screaming for blood.

a ps3 price drop is 1 of the few remaining things that could help save the ps3.
they are running out of options, that may be their last.
if there is no ps3 price drop in 2009 they are pretty much guaranteed 3rd place losers with no profits.

Ouch. But it's all the fortunes of war. Wait it out a bit, maybe get some of that sweet profit back on many of the existing lines of products, and then be prepared to bull back in as the market turns

OUCH... that hurts.
sony is in trouble.

all they sell are consumer electronic products that nobody needs and nobody is buying right now, especially when comparable brands are always lower than sony products.

they have no product to fall back on in economic times like these like ms has windows...

no matter what we will continue to buy computers for business and school and etc., but it probably wont be that overpriced sony vaio computer.

Someone posted on a blog the other day that Sony should consider making a Blu Ray-less player. I think that would be a stellar idea. I mean since I really don't see any Blu Ray games on the horizon, why not. It would be akin to MS's Arcade. They can even leave out BC (since I still have my PS2). Put it at a $200 price point and you have instant turnaround. That's why MS did so well this holiday, their entry level box was cheaper than the Wii. Just a thought from a couple of cheap ass gamers.

I think its high time they "region-free" their Blue Ray drives - I think it would boost PS3 sales tremendously.

Too little, too late.
I got no money now either Sony, had your chance dude.

I used to be a total Sony junkie, but lately it feels like they have lost their way. The root kit was the last straw for me.

"Well isnt someone a God Fearing John McCain Voting American"

LOL XD Go President Obama, Screw Senator Mclame and his anti-Videogame policies. He should be placed on a respirator in a retirement home.

I already found some nice ps3 discounts on Amazon via www.discount-hunt.com

Reuters: Sony may post $1.1 billion loss

Reader Comments (68)

Posted: Jan 13th 2009 11:10AM Levi said

Posted: Jan 13th 2009 9:01PM sk8monroe81 said

Posted: Jan 13th 2009 10:41AM shattercross said

Posted: Jan 13th 2009 12:14PM Levi Partridge said

Posted: Jan 13th 2009 9:46PM shattercross said

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Posted: Jan 13th 2009 4:06PM sk8monroe81 said

Posted: Jan 13th 2009 2:32PM Mr Khan said

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