In the past 14 years, Sony has faced an annual net loss of 98.9 billion yen that amounts to about $1 billion. It has been projected by the company that it is going to face even more loss in the coming days as there is a noticeable decrease in user demand of electronic goods. The loss is so immense for the company that it has planned to close three plants in Japan this year so as to compensate for its loss.
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
