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Sony's problems

Discussion on Sony's problems within the User Submitted News forum part of the News & More category.

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Sony's problems

Sony's share price has fallen to a 31-year low following the announcement of the company's record 456.7 billion yen (£3.5bn) annual loss.

Shares fell by 6.7 per cent to 1132 yen (£8.79) in response to Sony's latest financial results, announced yesterday. The report also revealed the fact that sales of PS3s, PS2s and PSPs were all down year-on-year.

Kaz Hirai, the Sony boss, has forecast a healthier outlook for the year ahead. That will include a return to profit for the firm's gaming division and an ambitious sales forecast for PlayStation Vita.

Yuuki Sakurai, president of Japanese finance firm Fukoku Capital Management, asked a few of BBC News' questions.

"Sony is facing a lot of difficulties and the new president has not been able to produce a clear plan as to how he will turn around the company. Even the little that investors have heard, they are not very impressed with."

Sony knew such losses would eventually come- the company last month braced investors it would announce the biggest loss for a decade.

To combat this, Kaz Hirai's "One Sony" vision for the company's future involves focusing efforts on just three areas: "digital imaging, game and mobile". The new plan was accompanied by the confirmation of 10,000 lay-offs.

Hirai commented at the time that the company's PS3, Vita and peripheral sales were "generating steady profit".
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