Sony has cut its operating profit forecast by 57% after recording dramatic falls in its electronics division. It says that annual net profit was now expected to be ¥150bn (£947m), down from an earlier estimate of ¥240bn (£1.5bn).
The electronics company says it has been bruised by price competition in the electronics and games markets.
A statement by Sony says: “We expect the results of certain businesses in the electronics segment, such as the LCD television, compact digital camera and video camera businesses, to be lower than the previous forecast due to a deterioration in the market environment brought on by the slowing global economy and an intensification of price competition.”
The company anticipates the deterioration will negatively impact operating income by approximately ¥90bn (£600m) compared to the July forecast.
It follows the release of company results for the three months to the end of September when it reported net income of ¥21bn (£130m), which was down from ¥73.7bn (£467m) a year earlier.