Sony braced for $1.1 billion loss

 

Gallery

By Stuart Turton

Posted on 14 Jan 2009 at 11:16

Sony may be gearing up for its first loss in 14 years, with an annual loss of $1.1 billion being widely reported.

Sony spokespeople refused to comment on the figure beyond calling it "speculation" and reminding us that it will post official figures on 29 January.

Despite this, the story sent Sony shares tumbling 8.9% overnight, with commentators blaming the Japanese Yen, which has strengthened at the expense of Sony's international business.

The company has also taken a hit in its attempts to make its PlayStation 3 console profitable. Its higher price in relationship to competitors has sent many customers over to the Xbox 360 and Wii.

The loss would be Sony's first since 1995, and the first attributable to its core electronics division, which has always been a reliable money spinner for the Japanese giant.

Sony has already cut 16,000 jobs and would likely require further cuts to stem its losses should the report prove accurate.