Feeds

PS3 delays, burning batteries undermine Sony profits

Giant slashes full-year earnings forecast

High performance access to file storage

Sony has slashed its annual earnings forecast by 38 per cent. The consumer electronics giant blamed the cut on its worldwide laptop battery recall, the need to reduce the launch price of the PlayStation 3 in Japan and delay its European release, and below-expectations sales of the PlayStation Portable.

The upshot? Sony will post a net income of around ¥80bn ($671.8m/£359.7m/€536.7m) for the year to the end of the March 2007, down from the ¥130bn ($1.09bn/£584.5m/€872.2m). Operating income will fall 62 per cent it added.

Sony said it was putting aside ¥51bn ($428.3m/£229.3m/€342.2m) to cover the cost of replacing all the laptop batteries recalled by Dell, Apple, Lenovo, Toshiba, Hitachi, Sharp and Sony itself over the past few months.

Meanwhile, "a decrease in sales and an increase in operating loss are expected within the Game segment as a result of the reduction of the retail price of PS3 hardware in Japan and the fact that sales and profitability from the PSP business are expected to be lower than originally forecast," the company said in a statement.

The company's electronics division will also suffer a knock-on effect because the games division isn't buying as many chips as its original PS3 roll-out plan forecast, Sony warned.

Despite these issues, Sony didn't revise its full-year revenue forecast, which remains set at ¥8.2tn ($69.1bn/£37bn/€55.2bn). ®

High performance access to file storage

More from The Register

next story
Feast your PUNY eyes on highest resolution phone display EVER
Too much pixel dust for your strained eyeballs to handle
Samsung Galaxy S5 fingerprint scanner hacked in just 4 DAYS
Sammy's newbie cooked slower than iPhone, also costs more to build
Microsoft lobs pre-release Windows Phone 8.1 at devs who dare
App makers can load it before anyone else, but if they do they're stuck with it
Report: Apple seeking to raise iPhone 6 price by a HUNDRED BUCKS
'Well, that 5c experiment didn't go so well – let's try the other direction'
Rounded corners? Pah! Amazon's '3D phone has eye-tracking tech'
Now THAT'S what we call a proper new feature
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Nvidia gamers hit trifecta with driver, optimizer, and mobile upgrades
Li'l Shield moves up to Android 4.4.2 KitKat, GameStream comes to notebooks
AMD unveils Godzilla's graphics card – 'the world's fastest, period'
The Radeon R9 295X2: Water-cooled, 5,632 stream processors, 11.5TFLOPS
Sony battery recall as VAIO goes out with a bang, not a whimper
The perils of having Panasonic as a partner
NORKS' own smartmobe pegged as Chinese landfill Android
Fake kit in the hermit kingdom? That's just Kim Jong-un-believable!
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.