Nikkei: Sony expected to post $1.12 billion loss

[NJ5]

drkohler said:

NJ5 said:

.. and they keep a financial division around which invests in the stock market..

I'd expect this division alone to run Sony into negative numbers, I was actually thinking of even bigger losses than $1b due to all of Sony's "non-productive" departments. Games and Movies should be ok, all the rest is probably problematic in these times..

 

I don't think the financial division will have that big an impact. Look at Sony's previous forecast revision:

http://www.sony.net/SonyInfo/IR/financial/fr/viewer/08revision/slide/07_slide.html

The stock market's decline only accounts for 22% of the revision.

I'd say Games could perhaps be profitable in the medium term with better exchange rates, the only problem is the Catch 22 between not cutting prices and not selling many PS3s, which will make it harder to counter the decline in PS2/PSP software sales. The Electronics division will probably be doing even worse due to low demand of course.