Analysts Predict Big Losses For Sony News
Jon Wilcox
21/04/2005
Finiancial survey forecasts a quarter loss of $658 million for the Japanese giant...
US Financial news organisation Bloomberg has today reported the results of a forecast from eight analysts, who have concluded that new Sony Corp. CEO Howard Stringer will soon post a quarter loss of $658 million for the three month period ending March 31st 2005 for the company - the biggest loss for the Japanese firm for two years and close to double the amount compared to the same period last year.
The news comes weeks before the unveiling of PlayStation3 and a statement regarding the overdue launch of the PSP in Europe (both of which are expected at E3 in May) and shows the momumental task that Stringer has to face in turning around the company. Making cost cutting decisions won't be a new one for Stringer though as he axed 9,000 jobs and saved $700 million during his time as Head of Sony's US operations, and it seems to be one of the main reasons behind his appointment to the top job.
It's somewhat ironic that Sony is perceived to be doing well given the strong branding of it's videogames sector, but with other areas of the company performing to a less than expected level, it seems that such a perception is misplaced.
We'll have more soon...