Sony Reports $315 Million Loss, Expects "Significantly Lower" Hardware Sales

Paul Lilly

Someone at Sony is probably listening to the Carter Family belt out "Keep On the Sunny Side" after having to report to investors (PDF) a $315 million net loss during the company's first fiscal quarter ended June 30, 2012, but as it turns out, maintaining a positive outlook is no easy task. In fact, Sony's financial outlook for the full fiscal year is the exact opposite. In pretty much every sector of business, Sony expects business to be lower than previously forecast, and in terms of portable hardware (think PS Vita), Sony expects "significantly lower" sales than what was being forecast in May.

Sony's game sales are down 14.5 percent year-over-year, a decrease the company blames on "lower sales of hardware and software of the PSP and PlayStation 3." This alone resulted in an operating loss of $45 million. Hardware sales weren't the main problem, however.

The company complained of a strong yen and slumping LCD TV sales. At the same time, however, the yen is about where it was at when Sony issued its May forecast, so it doesn't fully explain what's troubling Sony.

A silver lining for Sony was movie sales, which jumped 6.2 percent year-over-year, benefiting from higher theatrical revenues from the current fiscal year's film slate, and in particular Men in Black 3.

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