Sony Adds $200M in Expected Losses, Preparing for $1.2B Loss
Adding over $200 million in expected losses has Sony bracing for a grand total of $1.27 billion in overall losses for the past fiscal year.
According to GamesIndustry, Sony has added $200 million to its losses for the fiscal year that ended on March 31. Sony projected a net loss of $1.07 billion this past February, but these additional losses put its projected net losses around $1.27 billion. Towards the end of the last fiscal year, Sony was anticipating on making a $489 million profit. The widespread success of the PlayStation 4 launch and its ongoing first place seating of the next-gen console sales race would leave most people thinking that Sony would be alright. So what caused such a massive dent in Sony’s profits?
Sony believes this has happened from unforeseen expenditures and expenses that happened as the company pulled itself from the PC market this past February. Fans might remember Sony for providing its Vaio brand of desktops, laptops and PC hardware.
Surprisingly, Sony has noted that over $200 million in its overall losses can be attributed to “impairment charges mainly related to its foreign disc manufacturing business.” The prevalence of digitally downloading music, movies and video game software overseas has resulted in tremendous losses for Sony, especially in Europe. Since Europe tends to get Japan-based content a short time after North America does, it would make sense that a percentage of European audiences would turn to digital downloading to try and circumvent the wait.
Sony has been laying off gaming studio employees left and right throughout the past few months in order to try and alleviate these tremendous losses. In particular, its Evolution Studios, Guerilla Cambridge, SCE London and Sony Santa Monica have all been hit with a significant number of layoffs. Sony will be releasing its full fiscal year results on May 14.