The lights are on
Sony has released a revised forecast for the year ended March 31, 2014. The new numbers reflect a total loss of ¥130 billion ($1.27 billion), from ¥110 billion ($1.07 billion) as detailed in February.
Sony attributes the change to a number of things. Costs related to exiting the flagging PC business are higher than expected. Sony has noted further decreases in its sales following the announcement it will depart the market.
A decrease in Sony’s disc manufacturing business is attributed to lower demand for physical media. While Sony has been struggling overall, the games division has seen strong performance.
Sales of the PlayStation 4 have exceeded Sony Computer Entertainment CEO Andrew House’s expectations. At the launch of the PS4, House told us that he anticipated 5 million units sold by fiscal year end. Sony has moved over 7 million units to customers.
Our TakeSony is in the process of righting its ship, but it’s going to take time. There are a couple of strong pillars that are propping up the diverse company, including gaming. Sony’s studios have taken a number of hits with layoffs and departures, but I imagine it would have been much worse had the business unit not been profitable.