Sony Expected to Post First Loss in 14 Years: $1 Billion!

Sony Expected to Post First Loss in 14 Years: $1 Billion!

sonyThe fiscal year 2007-2008 was not a really great one for Sony, which is expected to post its first loss in 14 years (and just the second since the company was founded in 1958!) According to business publication Nikkei, the company will post an operated loss of $1.1 billion. However, recent reports regarding the reduction of PS3 manufacturing costs, as well as increased PSN usage might be translated as Sony’s way of saying “We can turn things around!”

The strange thing is that, according to the business publication, Sony had a $2 billion profit forecasted for the fiscal year 2007-2008, but things did not go as planned, especially because of the economic crisis and the fact that Sony is expected to cut off 16,000 jobs.

There were also reports that Sony could go even further and close some of its Japanese-based factories, but the company denied the rumors. However, it’s worth noting that Sony is not the only company to have recession-related problems. Actually, the only company that seems not to be affected is Nintendo, which analysts start to call a “recession-proof” company.

Update before posting: we just received word that Reuters confirms the Nikkei story.