Sony's electronics business dropped sharply, the game business improved

Sony recently announced consolidated performance for fiscal 2008. It was announced at the end of January this year that the electronics business fell in deficit following the global recessionFinancial results for the second quarter of fiscal 2008Although it was clarified in the report, it also has a significant impact on consolidated business results for fiscal 2008.

In the game business, significant improvement has been seen in comparison with the previous fiscal year.

Details are as below.
Sony Japan | 2008 fourth quarter earnings briefing

Consolidated results for fiscal 2008. A loss of 227.8 billion yen has occurred. The loss after adjusting the reversal of investment income and structural reform expenses by the equity method is 127.3 billion yen.


It sees by segment. Operating income of the mainstay electronics business declined by approximately 610 billion yen from the previous year, resulting in a loss of 168.1 billion yen. Game business improved by 66 billion yen, compared with the previous year, to a loss of 58.5 billion yen. Films and the financial sector are also sluggish.


Details of the electronics business are as follows. All major products such as Cyber-shot, VAIO, BRAVIA, Handycam are decreasing.


Factors to increase or decrease operating income. As a result of the impact of foreign exchange significantly exceeding the worsening of sales and cost of sales ratio.


Although sales declined due to a decline in sales volume of PS2 hardware and software, games business improved profitability significantly due to cost improvement of PS3 main body and increased sales of software.


In the film category, operating profit declined due to accelerated shrinking of the DVD software market due to the economic downturn.


We are announcing that we will reduce expenses, consolidate and consolidate business establishments, and reorganize our staff due to poor performance, but it seems that we are almost proceeding as planned.


The manufacturing plants to be consolidated and eliminated are as follows.


Forecast for capital investment in fiscal 2009. Capital investment for semiconductors will be reduced by 45 billion yen.


R & D expenditure forecast. It is expected to be reduced by 3% from the previous year.


Besides SonyLoss of 380 billion yen occurredThen, Panasonic,Loss of 343.6 billion yen occurredToshiba,(PDF file)Loss of 125.8 billion yenSharp that recorded,(PDF file)Loss of 787.3 billion yen occurredHitachi such as Hitachi and other electric companies have been driven to hardship and it is inevitable that forced to face a tough battle in the future, but it is a place where future trends of manufacturers are concerned.