No, Not Just The PS3: Sony's Q4 Profits Plunge 95% (SNE)

Sony’s (SNE) vaunted PS3 may be having trouble, with global Q4 sales down 9% from last year, but that’s only part of Sony’s worries. The company reported its Q4 net profit is down 95% from the year before as all units struggled.

Particularly troublesome for Sony (other than the PS3): Bravia HDTVs, which are overpriced relative to the competition and selling poorly.

AP: Sony Corp. said its net profit shriveled to 10.4 billion yen ($115.6 million) in the third quarter from 200.2 billion yen a year earlier. Revenue fell 25 per cent to 2.15 trillion yen from 2.86 trillion yen.

The quarter includes the year’s peak shopping season and is usually a big one for its core electronics division, which generates over half of its total revenues with well-known products like Bravia TVs, Cyber-shot digital cameras and Vaio computers.

But sales of such products fell nearly across the board as consumers held back, and Sony’s electronics division posted an operating loss of 15.9 billion yen, versus a 200.6 billion yen profit a year earlier…

Tokyo-based Sony has announced some restructuring measures, including cutting 8,000 of its 185,000 jobs around the world and shuttering five or six plants — about 10 per cent of its 57 factories.

But Chief Executive Howard Stringer told reporters last week that he had not gone far enough with cut costs and would work harder to combine the company’s diverse businesses, which also include its movie division and PlayStation game console business.

See Also:
Sony To ‘Slay Sacred Cows’…So Are PS3 Price Cuts Coming?
Sir Howard In Charge: 2000 Sony Jobs In Japan Cut
Sony To Sony Ericsson: No, You Can’t Make A ‘PSP Phone’

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