Summary:

Sony product woes are hurting its bottom line just as it looked like the company was making some progress. The company slashed its earnings…

Sony product woes are hurting its bottom line just as it looked like the company was making some progress. The company slashed its earnings forecast today by 38 percent to 80 billion yen ($674.3 million) citing costs associated with the recall of its laptop and notebook batteries and delays in the PlayStation 3 video game console.
The company will take a charge of $428.9 million to cover the costs of the battery recall, which was spurred after reports of them catching fire in some cases, up from Sony’s previous estimate of no more than $255 million, according to the Wall Street Journal.
As for the PS3, Sony estimates that the game console will reduce its operating profit by $788 million for the fiscal year ending March 31. The new console, slated to launch next month in the U.S. and Japan, has been hit by production delays. To be sure, Sony is doing its best to whip up the enthusiasm of gamers. Bloomberg News reported today that the company will offer as many as 20 new titles for the PS3 when it hits stores. It’s also making a buzz about online community. But rivals Microsoft and Nintendo have taken advantage of Sony’s delays to grab a bigger slice of the $20 billion global came-console market.
Still, Sony is trying to look on the bright side. In its press release, the company pointed out that despite the problems with the batteries and PS3, “we have continued to produce hit products in our LCD and digital-imaging product categories, including digital cameras, which are driving factors behind future business growth.” Release.

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