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Biggest Loss in 14 Years

Posted by: , 09:23 AEDT, Fri January 23, 2009
Tags: PS3

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Sony expects to lose $2.9 billion in operating income for the financial year that is ending in March of 2009

Last month, Sony said it would cut 16,000 jobs, curb investment and pull out of some businesses to slash $1.1 billion in annual costs.

Last Thursday they said they also planned on closing one of its two domestic LCD TV factories, cut an additional 2,000 jobs and call for voluntary redundancies in its Japanese work force.

"Sony has to consider ways to lower fixed costs not only for its TV business but for the whole company," Nomura Securities senior analyst Eiichi Katayama said. "It will have to start cutting development costs in addition to production costs."

When you are consistently losing $250 dollars on every PS3 sold because it costs more to build them versus the sale price, no wonder they are in such a horrible financial predicament.


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