Sony Express Losses of Over $1 Billion in the Last Year
Contrary to the success of the PlayStation 4 and Xperia smartphone range, Sony has recorded a loss of £750 million ($1.26 Billion) in its financial year, which ended March 2014. Year-on-year Sony has recorded a drop in income by over $2 billion or 89.4% despite the new product ranges.
Although Sony has made a general loss, their individual market sales have increased in both the game division and the mobile phone sector. With the launch of the PS4, Sony’s game sector sales have increased by 38.5% year-on-year; and their smartphone range increasing sales by 29.6%.
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It’s not all rosy however; Sony’s PS Vita, Vita TV and PSP sales have dropped from 7 million units a year ago to 4.1 million this year. They are then only predicted to sell 3.5 million units in the year ahead. The restructuring of Sony seems to have proven very costly to the company’s profits; and with the adjustments set to continue into next year the losses are only going to continue.
The restructuring of Sony included them selling of their well-known Vaio PC range and their New York headquarters. They also closed their eBook eReader Store and also said that their senior executives won’t get their bonuses for the third year in a row.
The streamlining of the company should put them in a stronger position in the years ahead; especially considering their rising profits in their Xperia ranges and the PS4, helping them to claw back the losses made in the previous years.