At the end of last week, Sony has reported their quarterly earnings. This was not, in any way, good news. Wall Street had already estimated a big loss for the technology giant, but nobody expected the massive losses that the company posted. On Friday of last week Sony reported an astonishing $1.2 billion loss. It was a surprise to many as the company had already unloaded their television and PC operations. There is a glint of brightness on the horizon and it’s in the shape of PlayStation 4.
Company-wide sales were1.9 trillion yen ($17.4 billion), this was an increase of 7.2% compared to the same period in the previous fiscal year. The increase was principally due to the involvement of the PlayStation 4, which continues to have tough sales and be outselling Microsoft’s Xbox One console. The operating loss of 172.0 billion yen ($1.6 billion) was ascribed to the company’s mobile communications division. This is in comparison to an operating income of 8.8 billion yen in the same period in the previous fiscal year.
The increase of 83.2% year-on-year to 309.5 billion yen ($2.8 billion) in the games and network services division, which includes the PlayStation brand, is the good point to this, otherwise, disastrous report.
The operating income of 21.8 billion yen ($200 million) in the division was recorded, compared to an operating loss of 4.2 billion yen ($39 million) during the same period in the previous fiscal year.
Sony is apparently not changing their financial estimates for the rest of the fiscal year, and is facing over $2 billion in losses for the year, if estimates hold.
The company’s credit status has been badly hit following the terrible quarterly results as rating agency Fitch and Moody has downgraded Sony’s credit to junk status. Standard and Poor has threatened that it will also shortly offer the same status on the firm, unless Sony sharply turn around their failures.
[Image via phonandroid]