Despite relatively strong performance from the PS3 and PSP, Sony has just announced the second-worst annual loss in the company's history, and its third loss in a row. The news comes as Sony issues a correction from its previous yearly estimate of a small (for a company the size of Sony) profit for 2010/2011, which would have marked a turn around for the Japanese tech giant.
As some are quick to point out, Sony is not the only Japanese company to post a loss following the horrendous earthquakes and tsunami that rocked the island nation earlier this year. Nine of Sony's plants were damaged and the Japanese economy has taken an enormous hit, so the correction to reporting a yearly loss should not shock anyone. Indeed, reports indicate that Sony will lay the blame for the massive loss directly at the feet of the earthquake and tsunami; however, judging by the headlines it is the size of the loss that seems to be taking people by surprise.
Sony seems to have been struck by a confluence of bad news over the past few months, not the least of which being the breach and subsequent shuttering of the PSN, bad news that has derailed the narrative from only last year that Sony was on the rebound from its previous economic troubles.
Of course, not only must this news be taken in context of the recent troubles to beset Sony, and Japan as a whole, but it must also be taken in context of the persistent recession that continues to make life difficult for employers (and employees) the world over.
Encouragingly, reports indicate Sony expects to post a net profit for the 2011/2012 fiscal year.