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Sony cuts earnings forecasts by 57%

Thursday, 23rd October 2008 11:00 GMT By Mike

According to this GI piece, Sony has cut its earnings by 57 percent and “downgraded its operating profit forecast” for year ending March 2009.

Sony had originally banked on ¥470 billion (£2.9 billion) in profit but have have revised that figure to ¥200 billion (£1.2 billion).

The company cited lack of demand for its products as well as “the strengthening yen’s impact on its export business, particularly on the company’s videogame activities.”

This comes in wake of PlayStation boss Kaz Hirai claiming that the company wasn’t “recession proof”.

Price cut now, surely? Unless you’re not making any profit on it to begin with, of course.

More through the link.

By Mike Bowden

Breaking news

8 Comments

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  1. G1GAHURTZ

    Sony is good.

    I like the PS3.

    #1 6 years ago
  2. Psychotext

    Umm… you don’t cut prices when you downgrade your profit forecast. Not unless you want to absorb even more losses.

    You simply limp along hoping to stabilise the ship.

    #2 6 years ago
  3. morriss

    Yeah but surely increased sales volume means bigger, longer term profits?

    Unless you’re not making any profit on the console, of course.

    Good point, well made.

    #3 6 years ago
  4. DrDamn

    Much better G1GA ;)

    I think this does seem to indicate a price cut is coming.

    #4 6 years ago
  5. Blerk

    They don’t just do consoles, remember.

    #5 6 years ago
  6. DrDamn

    @Psychotext
    Surely if your profits were based on a particular price point and projected sales then your forecast would go down if you were forced to revise the price point to meet the projected sales though?

    #6 6 years ago
  7. deftangel

    They will have to start selling a lot more games to realise significant profits any time soon…I think they’ll be doing well to be “getting by” until they can do a PSthree type relaunch.

    That they’ve got lots of 1st party stuff coming out should help though.

    #7 6 years ago
  8. Psychotext

    Longer term profits are all very well and good… but since when did beancounters work that way? They’re all about pleasing their shareholders with short term wins.

    Not that their shareholders are pleased.

    #8 6 years ago