Sony has added $200 million to its projected losses, bringing the total to $1.2 billion.
GI.Biz reports that for the fiscal year ended March 31, 2014, Sony has projected a net loss of ¥130 billion / $1.27 billion. It previously predicted a loss of ¥110 billion / $1.07 billion.
It comes after Sony initially predicted profits of 50 billion / $489 million at the end of the last fiscal year.
Explaining the projection change, Sony cited its exit from the PC market and end of its VAIO. We reported on the decision back in February, along with Sony’s decision to focus on the 4K market, and the expected laying-off of some 5,000 staff.
Sony’s PC sales for the fiscal year just ended are said to have been lower than expected.
In a statement, a Sony spokesperson said, “Consequently, Sony expects to record write-downs for excess components in inventory and accrual of expenses to compensate suppliers for unused components ordered for Sony’s spring PC lineup.
“In addition, certain restructuring charges are expected to be recorded ahead of schedule. As a result of these factors, an additional total amount of approximately ¥30 billion in expenses is anticipated to be recorded in the fiscal year ended March 31, 2014.”
The company also highlighted ¥25 billion in, “impairment charges mainly related to its foreign disc manufacturing business.”
It follows restructuring efforts at Sony, which have seen lay-offs at Guerrilla Games Cambridge, Sony London, and Sony Santa Monica Studio. There have also been a run of departures at Naughty Dog, but they have not been linked with lay-offs.
However, it’s worth noting that the firm’s operating costs have since dropped from ¥80 billion to ¥26 billion. We’ll have a greater breakdown of the numbers once Sony reveals its full financial report on May 14.