Sony Guts Profit Forecast by $1.7 Billion Due to Smartphone Business

The current Fiscal Year looked like it would finally be the year Sony returned to profit. They were projecting a $1.2 billion profit, something that the company sorely needs. However, the company has revised its profit forecast and is now expecting to lose $466 million due to its troubled smartphone business.

A note to investors (obtained by Gamesindustry) reveals that Sony’s smartphones are having a hard time gaining traction worldwide, and that the company is changing its plans going forward. From here on out, the company plans on focusing on their high-end devices, like the Xperia Z3, and reducing the number of mid-range models.

This is surely a definite blow for the Japanese company, especially considering how well the PlayStation 4 is selling. Sony recently sold of their VAIO computer division in an effort to save money, a move that became quite complicated and pricey to complete. Current CEO Kaz Hirai vowed to return the company to profit in 2012, but has so far failed to do so.