Sony ups loss forecast to $2 billion following smartphone struggles

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Sony ups loss forecast to $2 billion following smartphone struggles
Sony is now forecasting a 230 billion yen ($2.15 billion) loss for the fiscal year ending in March 2015, a revision nearly five times more than the company previously projected. The Japanese electronics giant was expecting a 50 billion yen loss, but today it announced it's downgrading the value of its mobiles business by 180 billion yen ($1.68 billion) following an internal review.

Sony began the review in July after cutting forecast smartphone sales by 14 percent following a sluggish opening quarter. The mobile business' "mid-range plan" is now no longer focused on growth, but instead designed to "reduce risk and volatility, and deliver more stable profits."

While the PlayStation 4 has had a stronger start than expected, the bigger picture for Sony remains colored by upheaval. The company is still in the process of laying off 5,000 workers following the sale of its PC Vaio business and the restructuring of its TV division. The projected $2.15 billion loss would be Sony's fifth year in the red out of the last six.

As far as the PlayStation division's concerned, the games business raised its operating profit forecast last quarter following the PS4's continued success. The console is leading the way this generation with 10 million units shifted in less than a year.
[Image: Sony]
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