Sony loss estimates more than quadruple

The PlayStation business may be buoyant, but significant struggles in the mobile sector are causing havoc with Sony’s financials.

For the full year ending March 2015 Sony now expects full year losses to reach 230bn (1.3bn). That’s nearly five times greater than its previous estimate of 50bn (286m).

It’s the sixth downward revision since current Sony boss Kaz Hirai took charge in 2012.

The problem, it says, is struggling sales of its Xperia smartphones, while its Bravia TV business will also lose money for the tenth straight year – all of which is despite the recent sale of is Vaio laptop business and the splitting of its TV unit into a separate subsidiary.

It has also reduced its smartphone sales forecast from 50m to 43m units.

A statement added that it has "modified to address the significant change in the market and competitive environment of the mobile business". Specifically, 15 per cent of its mobile staff are to be cut.

In 2012 it shed 10,000 jobs, and that followed the loss of 8,000 roles in 2008.

Bloomberg goes as far as to claim that Hirai is losing credibility” with investors as a result of the news – a fact no doubt influenced by his admission that Sony will this year not pay a dividend. Reuters says that it’s the first time that has happened since the company was listed in 1958.

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