Sony’s Financial Woes Nearly Quintuple After Second Quarter Mobile Phone Troubles
Sony has announced a drastic revision to its fiscal forecast for the year ending March 31, 2015. The company now projects a ¥230 billion ($2.15 billion) loss. In July, Sony expected only a ¥50 billion ($466.8 million) shortfall.
Sony cites a one-time “impairment charge” of ¥180 billion ($1.68 billion) related to its mobile communications division. Sony says the fair market value of this business has decreased.
The company also says it has revised its expectations for growth in the mid-range phone market. The new strategy will focus on specific geographies and premium handsets, with a reduction of model offerings in the mid-range.
This kind of financial hardship puts pressure on all divisions of the company’s operation, even those that are successful right now. Despite Sony touting 10 million PlayStation 4 consoles sold and the gaming division running in the black, this kind of change to shortfall projections could impact wholly owned studios as costs are cut from everywhere possible.