Second straight quarterly loss for Sony

Sony Global has reported its second consecutive quarterly loss as its range of BRAVIA LCD TVs, Cyber-shot cameras, Handycams, VAIO notebooks and Playstation consoles saw a decrease in sales over the period.

Overall the company’s sales and operating profit decreased 19.2 per cent compared to the same quarter of the previous fiscal year. The main factors Sony attribute this to are the slowdown of the global economy since September 2008 and the appreciation of the yen.

An operating loss of 25.7 billion yen (US$268 million) was recorded for the quarter, despite numerous efforts to reduce the cost of sales and selling, general and administrative expenses in response to the decline in sales.

In terms of consumer products and devices, Sony’s sales decreased by 27.3 per cent year-on-year to 773.4 billion yen (US$8,056 million) and an operating loss of 2 billion yen (US$20 million) occurred.

The loss, which affects its BRAVIA LCD TVs, Cyber-shot cameras and Handycams is said to be a result of the appreciation of the yen, deterioration in the business environment and the intensification or price competition.

The Networked Products and Services division, which is accountable for the company’s range of Playstation consoles and VAIO notebooks, also had a downturn with sales decreasing 37.4 per cent year-on-year to 246.8 billion yen (US$2,571 million) and an operating loss of 39.7 billion yen (US$414 million).

This is said to be due to a decrease in unit sales for the PSP and PS3 gaming consoles and its VAIO PCs.

According to the report 1.1 million PS3 units and 1.3 million PSP units were sold in the first quarter 2009 compared to 1.6 million PS3 units and 3.7 million PSP units for the same period last year.

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