This way, Sony will close a total of 8 plants worldwide through the year 2010, which will bring the total number of its existing factories down to 49. This decreasing practice doesn’t only restrict to closing plants, but also Sony is cutting off its 16,000 workers.

In the January to March quarter, Sony lost 165 billion yen, or about $1.73 billion USD which is huge when is compared to the 29 billion yen or about $304 million it attained last year during the same quarter. Sony is one amongst the big Japanese conglomerates that are facing loss lately like Toyota and Hitachi. As Samsung of South Korea and Acer of Taiwan produce cheaper goods, Sony is facing a recession.

Gaming sector is also Sony’s weak point where it is losing money, because Microsoft’s Xbox and Nintendo’s Wii are proving hard rivals of PS and PSP. Company has planned to close three plants in Japan as aforesaid, which are related to mobile phone cameras, video recorder parts and systems used for smart cards.

Souce: Yahoo News

The biggest drop in the last seven days was seen in the Nikkei 225 index that dropped 2.9 percent (258.9 points) to 8,574.46.

Things became even worse when well-known consumer electronic makers sharp forecast its first ever loss. The similar sort of low results were also posted by US aluminum maker Alcoa.

The Japanese authorities are considering offering another $100bn bailout to recover from the current worldwide economic gloom.

According to Japanese Finance Minister Kaoru Yonsano, the details of the new stimulus package will be issued on Wednesday. The Japanese government has already provided three economic stimulus packages before; as it’s going through the worst economic slow down after Second World War.

Other Asian stock markets also showed the same results, as Hong Kong’s Seng index fell almost 4.1 percent to 14,324.   The main index in South Korea saw 3% drop while BSE in India dropped 2.9 percent.

Alcoa poor results raised concern that a series of losses to be reported by many big companies worldwide.

He said in a live TV speech that the entire US economy was in danger if the steps weren’t taken now, it would be much difficult to handle it afterward.

President Bush has invited John McCain and Barack Obama to the White House to discuss the $700bn rescue package. The two presidential rivals are not agreed on delaying a TV debate over the economic crisis.

According to McCain, he will suspend his election campaign to help with the crisis, while Mr. Obama believes that at that time the need to hear from the candidates is more than ever for the voters.

In a bid to broker a mutually acceptable bail-out deal, the two men are going to attend a meeting with administration officials and congressional representatives in the US capital on Thursday.

In an evening address to the nation, President Bush said that major sectors of American financial system were at risk of shutting down and if action was not taken now, a distressing scenario may unfold.

However, doubts have been voiced by the lawmakers from Democratic as well as Republican Party as they have shown concern about the plan and the speed at which it is being asked to approve.

The lawmakers want assurance that the plan will benefit ordinary American home-owners and Wall Street as well.