updated 11:16 am EDT, Thu October 31, 2013
TV, gaming woes cast doubt on Sony's three-pronged plan
Sony has released its earnings statement for the most recent financial quarter, revealing a weak outlook due to poor performances by its entertainment and television divisions. The Japanese electronics giant cut its full-year profit targets by 40 percent and posted a quarterly net loss of $197 million for the three months ending September 30. Things are looking up, though, for the firm's mobile division, which has seen revenue and sales of its Xperia devices continuing to grow.
Sony expects to sell 42 million smartphones in this fiscal year, one of the only divisions for which earlier guidance estimates have not changed. The mobile division brought in $4.27 billion in revenue, even as other segments fell short of expectations.
Sony's movie arm saw an operating loss of $181 million, even though revenues grew over the quarter. Sony blamed that shortfall on the poor showing of White House Down, the company's expected blockbuster for the summer.
One of the biggest blows to the bottom line was a relapse into the red in the TV division. Faced with stiff competition from other Asian rivals, Sony's TV arm went from a $52.9 million operating profit in the quarter ending June 30 to a $94.7 million operating loss this most recent quarter.
Due to these difficulties, Sony has cut its full-year net profit forecast to $300 million, down 40 percent from its earlier estimate. The firm points to expectations of lower sales in televisions, digital cameras, and PCs, as well as continued low performance in the movie division, as the reasons for this target reduction.
Despite these setbacks, Sony's outlook remains positive in some areas. The company's PlayStation 4 console has seen considerable interest from the gamer community, and Sony expects to sell five million PS4 units by the end of March 2014. Sony also believes it will sell another 10 million PS3 units over the same time period.