Sony has reversed its earnings estimate from a $860 million annual profit to a loss of $3.2 billion for the financial year 2010.
The main reason given is deferred tax assets (in effect pre-paying taxes) as well as the impact of the earthquake of March 11 and the subsequent tsunami, which has hampered manufacturing. Added to this, demand for flat-panet tv’s has been down and in the space of portable devices, the company keeps losing ground to Apple.
The games division will also feel the impact of the PSN outage in May but this is not reflected in this annual report, which ends March 31st.
For the financial year 2012 Sony estimates the impact of the tsunami on operating income to be $207 million and the impact of the hacking of PSN to be $171 million. Despite these factors, the company expect operating income to remain flat year-on-year.