No, it's the opposite. They expect to lose $2.9 billion on their business, but including tax considerations and other income the loss is "only" $1.7 billion.

Depending on what you're using the numbers for, one or the other figure is more important. For this year, net income is more important, for the future I'd say operating income is more important as it reflects what's really happening in their operations (if the negative factors don't improve).

im still kinda confused, so which of the two are correct? or both?

Both are correct, they're just different measures.

In colloquial terms, suffice to say that Sony is expecting to lose a shitload of money.

There shouldn't be confusion here. Sony is expecting to post a 150bill yen loss (around $1.6 bill). This is made up of a $2.9bill operating deficit and a $1.3bill non-operating gain. Non operating profit is classed as non-recurring income and could be sales of capital assets (not inventory), tax credits, investment returns etc

Operating profit (loss) + non-operating profit (loss) = total profit (loss) before taxes

What's scary is they projected an operating profit of 200 billion yen three months ago. So in three months, they changed their operating profit downward by 460 billion yen!!!

Back in the beginning of the fiscal year, they were forecasting 450 billion yen in operating profit. So in 9 months, it changed 710 billion yen down (or $8 billion at today's exchange rate).

http://www.sony.net/SonyInfo/IR/financial/fr/viewer/07q4/slide/image/07_image.jpg

Of that 460bill drop, you'll notice that 405bill is a direct result of the bad economic conditions.

By sector, 74% of the 460 drop is caused by one division - electronics. The worst hit look to be Cybershot cameras, Bravia TVs and Viao PCs.

The game division breakdown is only 7% which must be a little less deflating for Hirai.

Maybe we should stop buying Ps3's because they make a loss on each one? lol? /jk?

I wonder how this might affect the upcoming price cut. If they continue with the current price the cost to make a Ps3 will drop below it's selling price, and with the hot titles coming out this year they're gonna shift lots of hardware price cut or no resulting in profit. But if they do cut the price their sales could go through the roof, can they afford the risk?

i just realized that microsoft made a profit of 4.17 billion in a quarter while sony made a loss of 2.9 billion in a year and M$ is still laying off people, i guess M$ loves money lol.

So how did the gaming division at MS do?