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Sony to post ¥520 billion loss due to tax expenses

Tuesday, 10th April 2012 09:35 GMT By Johnny Cullen

Sony has said it’s to report a loss of ¥520 billion ($6.4 billion) for the financial year ending March 31 due to additional tax expenses from the US.

it comes after reports it was set to lose 10,000 employees, a reduction of 6% of its global workforce.

The loss is larger than its previously-predicted loss of ¥220 billion back in February. Sony shares were down 3% before the announcement, the biggest one-day drop in three weeks.

New Sony CEO Kaz Hirai is expected to outline the company’s new strategy in a call this Thursday.

Via Reuters.

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23 Comments

  1. Erthazus

    If this will go on for another few 1-3 years Sony is going to be bought by some other company like Microsoft or Apple.

    They are in serious trouble.

    #1 2 years ago
  2. Patrick Garratt

    That’s fairly staggering.

    #2 2 years ago
  3. Razor

    Goodness, hope this plan of Hirai’s works out.

    #3 2 years ago
  4. Blerk

    That’s an OBSCENE amount of money. How on Earth does a company manage such staggering losses?

    #4 2 years ago
  5. f1r3storm

    Facebook buying Sony? ;)

    #5 2 years ago
  6. Patrick Garratt

    I’ll have a look at it. Got no idea how this stacks up with market cap, etc, but that’s an incredible sum. Firing people isn’t going to fix that.

    #6 2 years ago
  7. Razor

    Sony’s market cap is extraordinary.

    As in extraordinarily bad.

    #7 2 years ago
  8. Erthazus

    I think here is a mistake. 6.4$ billion motherfucking dollars is too much.

    #8 2 years ago
  9. daytripper

    They cant continue to bleed like that, a ridiculous amount of money to lose if true.

    I cannot see them investing heavily into playstation 4 if the rot continues.

    #9 2 years ago
  10. Erthazus

    They can invest in Ps4 by making a Nintendo Wii move :D

    but it will be the biggest disappointment ever because people always expect something big from a technology company.

    #10 2 years ago
  11. Christopher Jack

    With all this talk about buying Sony, I’d hope that they’d never fall that far but if they do I’d frankly like to see Google buy them above everyone else, Sony’s excellent hardware paired with Google’s software expertise is a match made in heaven.

    #11 2 years ago
  12. endgame

    If Sony falls then only US companies remain. This would be bad. Which makes me wonder.. if the americans have anything to do with Sony’s losses.

    #12 2 years ago
  13. Christopher Jack

    @12, Samsung & LG say hi!

    #13 2 years ago
  14. diego-rbb-93

    Wait a minute. Wasn´t “A billion” in Occident a different number than in Asia?

    #14 2 years ago
  15. Psychotext

    If it is, it’s certainly not in the financial world.

    #15 2 years ago
  16. Telepathic.Geometry

    It seems like for the last few years games companies are getting battered unrelentingly. I’m worried. I love my PS3, but it looks like it might be in trouble going forwards. Could the PS4 be in trouble too?

    #16 2 years ago
  17. viralshag

    @16, I would imagine so. Considering how profitability for the PS3 was a slow start I doubt they will be looking at the PS4 as a sure bet for a steady income.

    Unless they have the manufacturing costs spot on and they are guaranteed a profit from the get go, I can’t see how they wouldn’t shelve the PS4 for the time being.

    #17 2 years ago
  18. OlderGamer

    You can not make and then sell hardware that you can not afford. Period. Thats why Nintendo makes the Wii as inexpensive as possible. PS3 was a long list of things they shouldn’t have done.

    That being said, games alone obviously isn’t where the trouble is. But games should be helping and I doubt they are.

    Expect MS to smell blood in the water and out spend Sony next gen. Gameswise.

    Thinking out loud, but I wonder how much they lost on BluRay and 3D techs? Or even with stuff like the investment they put behind their MMOs(now all free2play).

    I guess I would like to see a breakdown of where they are bleeding the most.

    And lastly, next gen. Buy Sony. I would hate to see them become the next Sega. And worse I would hate to see MS be the only company competing against Nintendo. Cause if MS is the only deeppockets major player, we would be screwed over nite. Imagine the things they could do with Microtransactions!

    #18 2 years ago
  19. Christopher Jack

    @18, Agreed, I’d like to see where Sony went wrong what they got right. The one thing I’d have to disagree with is your bluray comment, I think it’s the sole reason a large amount of PS3 users got it in the first place, that’s a certainty but we can only guess how much it added to the end price & how that affected sales.

    #19 2 years ago
  20. OlderGamer

    I bet your right CJ, BluRay prolly moved a lot of PS3 early on. It was one of the reasons I bought mine. But the thing is I own maybe 15BR dvds, and a chunk of those are Harry Potters for the wife. They are just too expensive(tho they have gotten better), and when I only have one BR player, but have SD dvd players everywhere in the house, it doesn’t make sense to limit myself.

    Plus, NetFlix. TBh I really don’t buy too many dvds sd or br anymore. And the ones I do buy tend to be the really cheap sd dvds that Walmart blows out for 5usd.

    Overall i think the mass market just wasn’t ready for and didn’t care about BluRay movies. At least to the point that the platform didn’t really gain any traction for a long time. But I would love to see the breakdown of stuff like that.

    #20 2 years ago
  21. manamana

    Well the phone market wasnt exactly stale for them. The 3D tellys wasnt selling like hot cookies either. They had huge problems after the flood in Japan and than Thailand in their DSLR sector. Who knows how their movie related companies are doing on their big budget productions. The Vita isnt really helping to gain some losses in the games sector.

    I think its the sum of all parts that adds up. Its a tragedy and I hope Kaz knows what hes up to. Best whishes, though.

    #21 2 years ago
  22. LOLshock94

    Wait until amazing spider man comes out then they will be up by 10 billion

    #22 2 years ago
  23. Kuwabara

    give em 5 years and theyll be back to making billions

    #23 2 years ago

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