The strategy of Sony Corp. that shielded its PlayStation game enterprise from a strengthening yen has backfired. This year, Japan's yen became weaker which resulted to Sony's losses ahead of the debut of its latest game console.
Bloomberg's compiled data showed that 74 analysts estimated a further 10% surge in the dollar by the end of the company's fiscal year in March. Sony's currency-related losses were expected to deepen. Considering the analysts' projection, yen would be at around 106 to the dollar in contrast to today's 96.6 and 86.7 at the beginning of 2013. However, Sony still believed that the rate would stay at around 100 yen.
"It's going to be tough for Sony's game business this fiscal year if the yen continues to get weaker," Ace Research Institute's analyst in Tokyo, Hideki Yasuda, said. He reduced his forecast for the yearly operating profit of Sony by 5.9% to JPY230 billion. "Selling fewer PS4s this fiscal year would mess up its plan for the coming five years."
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