informa
/
1 MIN READ
News

Record Loss Predicted For Sony In Fourth Quarter

Analysts quoted in a new report have suggested that Sony could report its largest quarterly loss in four years this week, following lower than expected demand for its PlayStation 3 console, with a potential loss of ¥75.8 billion ($629.3m), as well as a PS
Analysts quoted in a new Bloomberg article have suggested that Sony could report its largest quarterly loss in four years this week, following lower than expected demand for the PlayStation 3, with a figure of ¥75.8 billion ($629.3m) being predicted. The ¥75.8 billion figure has been calculated from a median estimate of eleven analysts surveyed by Bloomberg, an increase from a loss of ¥66.5 billion ($552.1m) in 2006. The same analysts predict that sales will have risen by 9.5 percent to ¥2.02 trillion ($16.77bn). A fourth quarter loss of ¥121 billion ($1.00bn) is predicted for Sony’s game division, with a record deficit of ¥245 billion ($2.03m). The predictions contrast with what was seen as generally positive third quarter results for Sony, during which it exceeded both analyst and its own estimates. Sony CEO Sir Howard Stringer had previously promised to raise the company’s annual operating profit to 5 percent of revenue by the end of March 2008, although analysts now predict that only a figure of 4.1 percent will be reached. "The 5 percent margin target is reachable if there is no price cut in the PS3," quotes Bloomberg of Hitoshi Kuriyama, an analyst at Merrill Lynch Japan Securities. "But I'm expecting a 20 percent price cut this fiscal year, and if that happens, the margin will not reach 5 percent." Sony’s official results for its fourth quarter and full financial year are expected later this week.

Latest Jobs

Cryptic Studios

Remote
1.19.23
Senior Producer

Night School Studio

Los Angeles, CA, USA
1.09.23
Level Designer / Scripter, Games Studio

Fast Travel Games

Hybrid (Stockholm, Sweden)
1.09.23
Social Media / Community Manager
More Jobs   

CONNECT WITH US

Explore the
Subscribe to
Follow us

Game Developer Job Board

Game Developer Newsletter

@gamedevdotcom

Explore the

Game Developer Job Board

Browse open positions across the game industry or recruit new talent for your studio

Browse
Subscribe to

Game Developer Newsletter

Get daily Game Developer top stories every morning straight into your inbox

Subscribe
Follow us

@gamedevdotcom

Follow us @gamedevdotcom to stay up-to-date with the latest news & insider information about events & more