The fall is greater than previously expected, as many reports and analysts predicted Sony would forecast a loss of around $1.1 billion.
Sony’s game business, specifically, is expected to see its operating income decline by some $337m. Sony states that lower-than-expected sales are responsible for half of this loss, with the other half “due to the impact of the appreciation of the yen.” Revenue forecasts for both Sony electronics and Sony Pictures Entertainment have fallen as well.
The Yen stands at a 13-and-a-half-year high against the dollar, which has heavily restricted foreign earnings for a large number of Japanese businesses. Around 80% of Sony’s sales income comes from overseas.
Sony held the slowing global economy as responsible for a loss of ¥250 billion in operating profit, while the high Yen helped sink another ¥40 billion. Restructuring changes to the business will cost the company ¥30 billion.
For the fiscal year ended March 2008, Sony announced a profit of ¥369.4 billion.
Sony executives are expected to announce an emergency restructuring plan later today.