According to what was on CNN while I was watching it, the drop in forecast profits is largely based on the strengthening Yen
I don't know just how much of that is the stronger Yen and how much is other reasons though lol
http://www.cnn.com/video/#/video/business/2008/10/24/lah.japan.sony.cnn?iref=videosearch
Proud Sony Rear Admiral