Sony announced today that they have lost $390.5 million (¥37.1 billion) this quarter. The losses are blamed on consumers cutting back spending on TV and technology. Sony has also blamed currency rates, specifically a stronger Yen that is causing inflation in Japan and cuts away from revenue overseas.
Sony sales dropped 19.2% from a year earlier. This quarter’s sales were $16.8 billion (¥1.60 trillion). Operating loss was $267.77 million (¥25.7 billion). Demand for products such as Bravia TVs, Handycam video camcorders, and cyber-shot digital cameras, and Walkman music players have dropped. There has not been much demand for Sony’s consoles compared to their competitors either.
Sony sold about 1.1 million PlayStation 3 consoles and 1.3 million PlayStation Portables in the quarter. During the same quarter last year, Sony sold 1.6 million PS3 consoles and 3.7 million PSPs.
From a positive standpoint, Sony motion pictures saw a 6.5% increase in quarterly sales. The movie Angels & Demons helped trigger the sales increase.
Sony CEO Howard Stringer said that he expects the company to eliminate 16,000 jobs and cut costs in their 57 factories.