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Sony faces financial trouble: It expects to lose $2.9 billion this year

by Adelina Moisan

Tags: sony, playstation 4, samsung, apple, sony profit drop, annual loss

Popular electronics manufacturer Sony is headed for a major loss this year, as it declared on Thursday. It expects a $2.9 billion annual loss, which is devastating for a company going on the fourth consecutive year of profit drop.

Apparently, the terrible floods in Thailand, the unfavorable exchange rate and the economic crisis have had a major influence in Sony’s misfortune, and according to analysts, the company will take years to recover from this.
 
Sony isn’t the only major Japanese manufacturer to face such problems, it looks like more and more Japanese IT companies are having trouble coming out with the innovative, top-of-the-line products that customers are accustomed with.
 
Sony’s new CEO, Kazuo Hirai, recently promised to turn things around, regardless of the cost: “We cannot be afraid to make painful choices for the future of Sony. Our rivals and the operating environment won’t wait for us”.
 
And he’s right, because Apple Inc. and Samsung Electronics have overtaken Sony long ago. Analysts aren’t exactly optimistic about Sony’s rebirth and warn that it has “structural problems that will take years to fix”.
 
Kazuo Hirai will definitely be required to make some major adjustments and there are rumors that he may need to pull out the TV department altogether, as it is one of the businesses with the most significant losses.
 
Sony did not want to give out any details about the upcoming Playstation 4, although there are many rumors going around about its rival, Microsoft’s next generation Xbox. If Sony should also lose control of its console division, that would only mean even more challenges along the way for the Japanese firm.