Sony Confirms It's In Trouble to the Tune of a Record £3.5bn Loss

By Sam Gibbs on at

We knew it was coming, Sony even came right out and predicted it, and it took the pre-emptive move to slash jobs to try and bring some life back into its moneymaking ways. But now it's official: Sony's in trouble to the tune of 456.7bn yen, or roughly £3.5bn. That's twice the loss it made last year, and if it doesn't manage to climb back up to its small but optimistic profit forecast of just £230,000-odd this year, the Sony we know and love might end up slipping into the abyss.

Arguably you could blame the massive impact of both the Japanese earthquake and the tsunami; Sony was hit pretty hard right at home, forcing production issues and therefore impacting its supply chain. The strong Yen in Japan isn't helping either. But it's also facing fierce competition from the likes of Samsung, especially in its once strong TV division, which has made a loss for eight straight years.

If you take a look at Sony's latest Xperia phones, there's a glimmer of hope that it's back on the right track. To be honest, Sony hasn't stopped making good products -- most of its lines are full of solid stuff -- but it hasn't made many truly great products for a while now. It also needs to stop making proprietary products, that just aren't going to help its bottom line.

I really hope Sony's able to bounce back; that it's restructuring does the business, and that it's not impacted by any more environmental disasters, because I want the Sony-of-old back. Remember when everyone had a Walkman? That was Sony's heyday, and the world could benefit from another innovative electronics company firing on all cylinders like Sony used to. [BBC]