The reverse in fortunes is mostly due to writing off a $4.4 billion tax credit, although the company has been struggling with both the recent earthquake and hacker attack that disrupted operations of both its physical operations and online services. Sony CFO Masaru Kato doesn't beat around the bush: "In the first quarter, we saw quite a major impact on our manufacturing activities."
Sony also has spent over $170 million in response to the hacking intrusion last month. These funds went to rebuilding the network, providing identity protection coverage, investigating the attacks, free game time, and customer support.
This is the second straight year that Sony has operated at a loss, although last year's $439 million wasn't nearly as severe as this promises to be.