Troubled times for PS3 and PSP: Sony cuts earnings forecast by 57%

Sony Slashes 2008 Fiscal Forecast by 57 Percent - Image 1Sony pulled down its earnings forecasts for the fiscal year of 2009 by 57%. If that sentence didn’t catch your attention, how about this: Sony’s in deep doodoo, which does not stand well with the future of the PlayStation 3 and the PSP.

More after the link.

Sony Slashes 2008 Fiscal Forecast by 57 Percent - Image 1Sony pulled down its earnings forecasts for the fiscal year of 2009 by 57%.

If that sentence didn’t catch your attention, how about this: Sony’s in deep doodoo, which does not stand well with the future of the PlayStation 3 and the PSP.

Pachter might think that the video game industry won’t be affected much by the recession, but he probably forgot to consider that not all of the titans of the industry have their investments in gaming.

Aside from the PS3 and PSP, Sony’s empire also includes digital cams, LCD TVs, and other electronics. Because of troubled times in the economy, it’s not surprising people aren’t interested in these things as much.

Sony’s previous earning estimate was JPÂ¥ 470 billion, but the cut brought it down to JPÂ¥ 200 billion. One analyst believes that Sony’s earnings per share could drop as much as 90%, and that a more realistic number for their earnings should be JPÂ¥ 50 billion. I never liked overly pessimistic analysts.

Anyway what does this all mean? It means we’ll likely see Sony tighten its belt soon, and we’ll see the effects soon enough.

Via Times Online

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