Sony’s Anticipates $2.9 Billion Annual Loss

The Japanese electronics giant, Sony continued to incur losses as it announced on Thursday that the company is anticipating a loss of $2.9 billion for fiscal 2011, which is doubled the figures estimated earlier.

While announcing its fiscal 2011 third quarter results (Company’s fiscal year runs April to April), the Japanese electronics giant accused the floods in Thailand, adverse foreign exchange rates and a failed venture with Samsung for its misfortunes.

For Sony, third quarter revenues also decline by 17.4%. Compared to the results of 2010, Sony experienced the worst nine months of business ended on December 31, 2011. The details are as follows: televisions (down 28.4% in sales), home audio and video (-14.8%) and digital imaging (-24.7%). Its PlayStation 3 sales also saw a decline in growth due to the company’s initiative to cut price back in August from $300 to $250 for entry-level 160GB version.

In the third quarter earnings call, Sony didn’t provide any details about its PlayStation 3. The company had a big blow last April when hackers took down the online PlayStation Network, compromising credit cards of over 77 million users.

In order to regain its lost image, the company has announced some management reshuffle on Wednesday. The Japanese electronics giant has replaced its CEO and President. Kazuo Hirai, former executive deputy president and head of the company’s Customer Products & Services Group, will replace Howard Stringer. He has been with Sony since 1984 and served at different positions at different times in Sony Computer Entertainment. He is also credited for company’s success with PlayStation platform in the United States.

Kazuo Hirai while addressing a news conference in Japan said that regardless of drooping sales, televisions will remain a vital product for Sony’s business to move forward. He said, “Televisions are important as an output device. He added “withdrawing or shrinking would cut a link for customers to experience” Sony’s content, reports Bloomberg.

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