Sony’s axe hits PlayStation group, losses expected

Sony has finally revealed more of its plans for restructuring.

Although the PlayStation Group didn’t get the brunt of the axe’s swing, it didn’t come away undamaged either. The company has announced plans to cut its target shipments of PSPs this year by 1 million units. More details after the link.

Sony has finally revealed more of its plans for restructuring. Although the PlayStation Group didn’t get the brunt of the axe’s swing, it didn’t come away undamaged either.

The company announced that it has reduced its projected target sales of 16 million PSPs this year to just 15 million. The PlayStation 3 is still expected to sell 10 million units.

They also decreased projected sales of the PS2 from 9 million to 8 million. They expect to sell 250 million games for the financial year. What all these numbers mean is that overall sales of games and hardware are both expected to decline. Sony expects to post an extra US$ 336 million loss for the PlayStation group alone.

The company as a whole expects to post a US$ 2.9 billion loss, way worse than analysts predicted. They attribute the loss to the weak economy, and the strengthening Yen.

The axe hasn’t stopped swinging yet, as Sony announced that they will be doing a “headcount reduction” in its businesses, including the games divisions. They also plan to reduce “marketing, logistics, and other general expenses” to staunch the bleeding of the green without further restructuring.

Via Gamezine