Sony has had to weather the perfect storm of a Sony PS3 price reduction in Japan, launch delay in Europe, PSP performing poorly, and notebook batteries bursting into flame in the last few months. Accordingly, Sony has announced that they're slashing profit forecasts by 38%.
"A decrease in sales and an increase in operating loss are expected within the Game segment as a result of the reduction of the retail price of PlayStation 3 hardware in Japan and the fact that sales and profitability from the PSP business are expected to be lower than originally forecast," said the company in an official statement as reported by GI.
Sony went on to acknowledge that "decreased operating income is anticipated within the Electronics segment due to a production adjustment of devices for use in PS3, including semiconductors."
"With regard to PS3, although we expect to record a loss for the business during its initial launch phase within the current fiscal year, we look forward to the successful worldwide deployment and expansion of the platform," Sony explained.
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