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Like we said on Friday, Sony just can't catch a break. Japan's major earthquake devastated the company the same as it did almost every other Japanese company; then hackers kicked them (and their crappy security systems) while they were down and brought the PlayStation network to its knees. It's been bad news after bad news since March, and the company's recently revised financial forecast shows just how hard the past few months have been to Sony's wallet.
Original forecasts pegged the company's projected income for the year at about $850 million; the new events and line items drags that number down to almost a $3.14 billion dollar loss. That's a turnaround of nearly $4 billion, a number that's sure to send investors reeling themselves. And, since the addendum only takes events up to the end of March into account, the costs associated with the PlayStation Network debacle aren't even included in that figure.
Digging into the report, Sony pins most of the blame on two events. Sony estimates the direct and indirect costs from the earthquake at approximately $551 million, and the company's also due to chalk up a $4.4 billion dollar non-cash charge to deal with Japanese tax issues.
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Roadkyng
May 23, 2011 at 7:20pm
While I don't condone acts of lawlessness. The fact it happened to a company that charges jacked up prices for ordinary products doesn't bother me. Paying extra $$$ because it says SONY flat blows. Wonder if these 10 yr old hackers will go after Bose next????
Wingzero_x
May 24, 2011 at 11:45am
You know it's a persons choice if they want to buy any product or not. Point is if you think it's not worth the value then don't buy it. Personally though when I buy a cassette walkman back in 88, and it lasts until you can no longer find media for it, that is a quality product well worth the premium I paid for it.
Joji
May 23, 2011 at 1:15pm
And even so, the Tokyo Government claims that the earthquake/tsunami was a good thing because Japanese people are greedy. He never appologized...
What will Sony's fate be I wonder...
JohnP
May 23, 2011 at 12:51pm
Read into it in the WSJ. The "huge loss" is just an accounting charge, nothing really to do with the bottom line. Look at the stock price to see how the people in the know are reacting to the numbers... no real change at all.
Leave the financial news to the people who actually know what the hell they are talking about (not that they actually KNOW what they are talking about but hey...)
rayatwork05
May 23, 2011 at 4:07pm
" Look at the stock price to see how the people in the know are reacting to the numbers... no real change at all."
its obvious your not one of the "in the know"....their stock is down 30%, representing a loss of $7b...
"no change at all" lol.
Modroneman
May 23, 2011 at 12:28pm
As much as it sucks that Japan was hit so hard by the tsunami, it really is hard to feel bad for a multibillion dollar company losing a small percentage of its worth.
