If you only pay attention to Sony's Playstation 4 news, you'd think the company was killing it in sales and sitting in pools of cash as a result. Unfortunately this is not the reality for the Tokyo-based electronics company, who, just like Samsung, had some bad news to share in the month of October.
Sony Corporation reported a $1.25 billion loss between the months of July and September. The reasons for the losses can be pointed mostly at the mobile division, which accounted for $1.07 billion in losses during Sony's fiscal Q2 this year. Some of the remaining losses can be attributed to Sony's movie division, where an operating loss of $10 million was reported.
Sony's quarterly sales did increase by 7% to a total of $17.4 billion. The increase is credited to the music division posting slight profits and the Playstation 4 maintaining a healthy stream of sales over the summer months. Even with the increase in sales it's unknown if the console generated much in the way of profits, a common issue when products such as the Playstation 4 and Microsoft's Xbox One first release.
In the wake of the posted losses, shares of Sony rose to $19.75 on the New York Stock Exchange, a rise of 5%. The company has lowered its revenue forecast for its movie segment slightly but is keeping its forecasts for other divisions the same for the remainder of its fiscal year. Sony expects to close its fiscal year in March 2015 with $70 billion in revenue with a loss of $2.1 billion.
Source: LA Times