Sony Corp. slashed its earnings forecast Thursday, blaming costs associated with the global recall of its notebook-computer batteries and reduced expectations for the upcoming PlayStation 3 game console.
The Japanese consumer-electronics giant has been beset by recent setbacks, including the summer recall of about 9.6 million Sony-made lithium-ion laptop batteries from such computer makers as Dell Inc., Apple Computer Inc., Toshiba and Lenovo Inc.
Sony has set aside $431.6 million to cover costs associated with replacing the batteries, which posed a fire hazard.
Sony also expects losses for its game unit to deepen to 200 billion yen – 60 billion yen more than forecast in April – because of the 20 percent price cut it announced last month in Japan.
The price cut on the 20-giga byte game system is likely to affect sales because initial shipments will be limited. Production problems already forced Sony to push back the launch to November in Japan and the U.S. and to delay the console’s introduction in Europe until March.
Sony said slower sales of the PlayStation Portable game system would also affect the bottom line. It cut shipments of the hand-held game system by 25 percent to 9 million units.
Sony cut its fiscal-year operating-profit forecast by 62 percent to 50 billion yen from its July estimate of 130 billion yen. That compares with a consensus of 150 billion yen based on a poll of 22 analysts by Reuters Estimates.
Sony noted charges associated with its restructuring effort were less than originally forecast and pointed to strong sales of its LCD televisions and digital cameras.
The downbeat earnings projections come as Sony Computer Entertainment unveiled its lineup and launch plans for the PlayStation 3. Sony said it will have 20 games available in time for the Nov. 17 North American debut.
