Sony – the world’s second-largest consumer electronics maker – is expected to post a $658 million loss for the first quarter of 2005, which ended March 31.
If the Bloomberg report is true, it will be the biggest single-quarter loss in two years, in which the company lost around a billion dollars in a single quarter.
“The outlook is bleak,” says an analyst from Goldman Sachs Japan. “The U.S. economy is showing signs of a slowdown and Sony will probably have to book further charges to accelerate cost cuts.”
Sony’s gaming division has been the strongest sector for the company with its PlayStation 2 as a clear market leader. Its PSP is seen as a product that must succeed.
In its first weeks on the market, the PSP has sold over 500,000 units in the United States out of 1 million units available on store shelves. It faces stiff competition from Nintendo’s 6 million unit-seller, the Nintendo DS.