Sony announced its financial results for Q2 of fiscal year 2013, reporting a loss for the quarter. The company's shares slid in the market especially after the PlayStation maker announced weak future outlook.
On Wednesday, October 30, the Japanese electronics giant posted its financial results for the quarter ended September 30. Sony lowered its full-year profit estimation by 40 percent and confirmed a loss for the quarter.
Sony revealed that the declining demand coupled with the drop in prices of its key products such as televisions and gaming consoles were the main reason for the company to post a loss and lower its profit expectations for the year.
The cinema division faced losses as films like "White House Down" did not generate enough profits as the company would have expected.
Sony said at the earnings call that now it expects to make a net profit of 30 billion yen (approximately $305 million) in the financial year ending March 31, 2014. The net profit estimation is down from 50 billion yen made earlier this year.
The company confirmed that it faced losses of 19.3 billion yen in Q2 2013, which has resulted in the net profit cut down for the year.
Sony's television division has been struggling in the recent years and the company posted a loss of 9.3 billion yen during Q2 2013.
The company seems on track to release its next-generation gaming console, the PlayStation 4, just in time for the holiday season. The company will hope that the latest PlayStation 4 makes an impact in the gaming industry and sells like hot cakes; however, the PlayStation 4 will have to face stiff competition from the Xbox One, which is due to arrive around the same time.
Sony may find it challenging to get things back on track and regain its investor's confidence in the near term. Shares of Sony sank by 11 percent to 1,668 yen on the Tokyo Stock Exchange after the company's earnings call.
