The PS4 may be doing well, but Sony as a whole is not. Sony has revised its expected losses to include an additional $200 million. The company is now expecting to lose ¥130 billion ($1.27 billion) for the fiscal year.
This is mostly attributed to unforeseen expenses associated with their exit from the PC market. If you recall, Sony announced back in February they were going to sell their VAIO PC brand in order to save some money.
“Consequently, Sony expects to record write-downs for excess components in inventory and accrual of expenses to compensate suppliers for unused components ordered for Sony’s spring PC lineup,” Sony said in a statement.
“In addition, certain restructuring charges are expected to be recorded ahead of schedule. As a result of these factors, an additional total amount of approximately ¥30 billion in expenses is anticipated to be recorded in the fiscal year ended March 31, 2014.”
Physical Media has also seen a sharp decline in Europe causing even more losses. They”ll lose ¥25 billion in, “impairment charges mainly related to its foreign disc manufacturing business.”
Its not all doom and gloom for the company. Sony will be able to partially offset the losses thanks to many of their cost-saving measures. Hopefully the company will be able to turn things around next fiscal year.
Sony will release their full Fiscal Report on May 14.