Sony adjusts 2006 financial forecast

forecastIt’s just so hard to not post “bad” Sony news. It’s all out there, and when it’s your task to report stuff, well, we guess you just have to swallow your frog and go do your job.

Okay, here we go. IGN reports that Sony has changed its financial forecasts for the 2006 fiscal year. While the company still expects revenues of $69 billion, it has lowered its group operating profit forecast by 62% ($424 million) and net profit projection by 38% ($678 million).

The biggest factor in this forecast revision is due to the recall of Sony bran lithium batteries. Sony expects that this worldwide recall will reduce profits by around $432 million.

In the gaming side of things Sony expects an overall drop of $508 million in operating profits. The company cites the poor sales of the PS2 and the PSP and the change in specs and pricing of the PS3  as reasons for this drop. The electronics division also gets affected by the games division as the production changes for the PS3 and other PS3 devices caused a drop in operating profit of $280 million.

Sigh.

Anyway, the bright side of all this is that November is almost here, and Sony expects a big turnaround in profits come 2007. Here’s what Sony said:

With regard to PS3, although we expect to record a loss for the business during its initial launch phase within the current fiscal year, we look forward to the successful worldwide deployment and expansion of the platform, As a result, we expect that we can realise a significant improvement in profitability during the fiscal year ending March 31st, 2008.

Well it better get better. Ready your wallets people. It’s not just us looking forward to the release of the PS3, Sony is too. Play B3yond indeed.

Via IGN

forecastIt’s just so hard to not post “bad” Sony news. It’s all out there, and when it’s your task to report stuff, well, we guess you just have to swallow your frog and go do your job.

Okay, here we go. IGN reports that Sony has changed its financial forecasts for the 2006 fiscal year. While the company still expects revenues of $69 billion, it has lowered its group operating profit forecast by 62% ($424 million) and net profit projection by 38% ($678 million).

The biggest factor in this forecast revision is due to the recall of Sony bran lithium batteries. Sony expects that this worldwide recall will reduce profits by around $432 million.

In the gaming side of things Sony expects an overall drop of $508 million in operating profits. The company cites the poor sales of the PS2 and the PSP and the change in specs and pricing of the PS3  as reasons for this drop. The electronics division also gets affected by the games division as the production changes for the PS3 and other PS3 devices caused a drop in operating profit of $280 million.

Sigh.

Anyway, the bright side of all this is that November is almost here, and Sony expects a big turnaround in profits come 2007. Here’s what Sony said:

With regard to PS3, although we expect to record a loss for the business during its initial launch phase within the current fiscal year, we look forward to the successful worldwide deployment and expansion of the platform, As a result, we expect that we can realise a significant improvement in profitability during the fiscal year ending March 31st, 2008.

Well it better get better. Ready your wallets people. It’s not just us looking forward to the release of the PS3, Sony is too. Play B3yond indeed.

Via IGN

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