Feeds

PS3 delays, burning batteries undermine Sony profits

Giant slashes full-year earnings forecast

Business security measures using SSL

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). ®

New hybrid storage solutions

More from The Register

next story
Half a BILLION in the making: Bungie's Destiny reviewed
It feels very familiar - but it's still good
Apple's big bang: iPhone 6, ANOTHER iPhone 6 Plus and WATCH OUT
Let's >sigh< see what Cupertino has been up to for the past year
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
A SCORCHIO fatboy SSD: Samsung SSD850 PRO 3D V-NAND
4Gb/s speeds on a consumer drive, anyone?
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Get your Indian Landfill Android One handsets - they're only SIXTY QUID
Cheap and deafening mobes for the subcontinental masses
Apple's SNEAKY plan: COPY ANDROID. Hello iPhone 6, Watch
Sizes, prices and all – but not for the wrist-o-puter
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.