PlayStation platform holder Sony has reported losses of $1.04bn for the year ending March 31st – a stark dip compared to the $3.7bn profit seen in the same period in 2008.

It is the company’s first annual loss of 14 years, though it’s not as bad as the previously predicted $1.6bn loss. As a result Sony now expects an operating loss of $1.2bn for its year ending March 2010.

The tough global economy was named as the main reason for the results, with worldwide sales dropping by 12.9 per cent. Sony is already in the process of cutting 16,000 jobs globally, and has now confirmed the closure of a further five manufacturing plants – with its LCD TV operations expecting to take the biggest hit.

Sony’s shares have fallen 6.8 per cent on the back of the news.