Sony has slashed their projected profits for 2008 by 38% after a number of factors have hurt the company financially.
Sony's profits for the quarter just ending on September 30 was nearly half of what they earned in 2007. They made profits in this past quarter of roughly $754 million. Microsoft, in comparison, earned $4.3 billion in income with $178 million earned in profits in its entertainment division.
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The company said the most significant setback was higher than expected foreign exchange losses. The stronger yen, which went below the 100 mark against the dollar earlier this month, has dealt a blow to manufacturers, making exports more expensive. The company also cited a steeper global downturn, which is likely to pummel its LCD TV and digital camera businesses. To top it off, Sony expects to lose more on its equity investments thanks to the massive slide in Tokyo's stock market, which gained momentum this week.
Sony's profits for the quarter just ending on September 30 was nearly half of what they earned in 2007. They made profits in this past quarter of roughly $754 million. Microsoft, in comparison, earned $4.3 billion in income with $178 million earned in profits in its entertainment division.
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