Sony Expects to Incur an Additional $200 Million in Losses for The Fiscal Year
With the PS4 doing so well, its easy to forget that Sony as a company is more than just PlayStation. Unfortunately, the company as a whole hasn’t been doing too well and just announced some more bad news. Sony released a statement explaining that they are expecting to lose an additional $200 million in losses for the fiscal year ending March 31, 2014.
Sony says the decrease is in part due to their PC business, which they sold in February.
Since Sony’s announcement on February 6, 2014 that it will exit the PC business, PC sales for the fiscal year ended March 31, 2014 and expected PC sales for the fiscal year ending March 31, 2015 are underperforming the February expectation. Consequently, Sony expects to record write-downs for excess components in inventory and accrual of expenses to compensate suppliers for unused components ordered for Sony’s spring PC lineup. In addition, certain restructuring charges are expected to be recorded ahead of schedule. As a result of these factors, an additional total amount of approximately 30 billion yen in expenses is anticipated to be recorded in the fiscal year ended March 31, 2014.
Additionally, Sony ties the extra losses to the decrease in physical media demand, particularly in Europe, and the overall change in the forecast for the disc manufacturing business. Full details of Sony’s financial matters will come on May 14 when the company releases its complete fiscal year results.
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