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Sony Potentially Posting Massive Losses



[drupal=29943]Sony Potentially Posting Massive Losses[/drupal]

According to business news trade sources, Sony may be posting massive losses for the fiscal year ending March 31. Sony could be facing up to 100 million yen in losses (1.1 billion US dollars) according to industry analysts, though the Nikkei Business Daily thinks that might double to 200 million yen (2.2 billion US dollars) if the industry giant cannot ship some of its stocked up inventory.
For game consumers this can mean a couple of things. For one, we can look at potential price cuts on Sony products such as hardware, TV's/monitors, and consoles. By cuts, I mean reductions in cost to retailers, who can then pass those savings along to a consumer; or keep the prices the same and earn a wider profit margin. It also means that we might be seeing an accelerated time-table for Sony's 8,000 job layoffs announced last month. Sony also announced another 8,000 "temporary work force" (contractors, temporary employees, etc.) would lose their jobs as well. These layoffs could potentially effect Sony Online Entertainment's upcoming MMO The Agency, though some experts are suggesting that the cuts will affect Sony Computer Entertainment. Sony's David Reeves (of SCEE) said that the PlayStation division would not be effected while
Sony Japan spokesperson Atsuo Omagari stated "We do not plan to announce
additional restructuring measures at this time... we don't have any
such plan."

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Something seems a bit off with the figures. Given that the Yen/Dollar exchange rate is approximately ¥100 = US$1, then 100 million Yen would be approximately 1 million US Dollars.


Didn't notice that, before...
Reuters apparently reports the $1.1billion, so the error probably lies in the conversion to ¥.
A quick conversion makes that nearly ¥100billion (99.something).