Sony has revised their fiscal 2008 forecast, revealing an extra loss for the Games Division.
Sony is expected to post their first net loss in 14 years, of 150 billion yen ($1.65 billion/£1.21 billion), for the fiscal year ending 31st March 2009.
The following numbers are merely the companies revised predictions over those announced in October 2008, where they predicted a net profit of 150 billion yen for the company.
What’s to blame? Sony cites the deterioration in the business environment due to the global economic slowdown, in addition to the strength of the Japanese yen against foreign currencies (this is referred to as the “appreciation of the yen.”) It’s important to note, all businesses are suffering, as shown by this Cnet run-down. Other significant costs for Sony. found in Sony’s restructuring plans.
As for the Games Division; Sony expects an extra 30 billion yen loss, which equates to $336 million/£243 million. Depending on Sony’s previous forecast (a previous Games Division forecast is difficult to come by), the overall operating loss could be higher or lower than 30 billion yen. 15 billion yen is due to the strength of the yen, and another 15 billion yen to lower-than-expected sales – despite software sales being up 75% in Japan.
Sony’s revised game console forecasts for 2008 fiscal year stay at 10 million for the PlayStation 3, 15 million PSPs (down from previous forecast of 16 million), and 8 million PlayStation 2s (down from 9 million.) 250 million software sales are predicted for the financial year (down by 8 million.)
As part of its restructuring initiatives, which aims to reduce losses by ¥250 billion, Sony announced that its businesses, including the games division, will see a “headcount reduction.” * Plus, as part of “non-restructuring cost-reduction measures”, Sony plans to implement “significant reduction in marketing, logistics and other general expenses.”
You can find an extract from their forecast (which is subject to change) below:
[UPDATE] – *Gamesindustry.com reports that the Games Division is unlikely to be affected by the headcount reduction. SCEE president David Reeves has reportedly emailed Sony Computer Entertainment staff after the revised forecast, stating that, “as was the case with the previous Sony restructuring announcement this mainly concerns our electronics business.”