Despite a strong showing from the PlayStation 4 and its line of smartphones, Sony on Wednesday reported a ¥128.4 billion ($1.25 billion) net loss for the 2013 fiscal year. Things aren’t expected to get better anytime soon either as the Japanese tech giant is expecting a loss of ¥50 billion ($489 million) for the next fiscal year ending in March 2015.
Sony said sales were up 14.3 percent compared to 2012 with the smartphone division actually turning a profit. The gaming division also turned in a solid performance with sales of $9.5 billion – that’s up 38.5 percent year over year. Overall, Sony bought in $76 billion in sales during the year-long period.
The loss is largely credited to costs associated with restructuring which will continue throughout this year. If you recall, Sony announced in February that they were selling their entire PC division to Japan Industrial Partners for an undisclosed sum and would be laying off 5,000 staff members globally.
Selling an entire division would seem like a quick way to generate revenue but the truth of the matter is that Sony had to record write-downs for excess components in inventory and compensate suppliers for unused components that would have went into their spring PC lineup.
Sony also cited shrinking demand for disc-based media as another reason for the loss.
Do you think Sony’s woes are indeed temporary and will pass once the restructuring efforts are complete or are its better days in now in the rearview mirror?