Sony reported a 71% fall in net profit for the three months to the end of September, compared with the same period last year.
For the same period last year, the company posted a profit of 25bn yen.
Sony's net profit for the quarter was 20.8bn yen, down from 71.8bn yen for the same three months last year. Sales were down 0.5% at 2.1 trillion yen.
Tough competition
Last week Sony slashed its full-year forecasts blaming the strong yen and tough price competition. It is particularly susceptible to currency fluctuations as 80% of the company's sales are outside Japan.
And worse could be to come, as the global economic slowdown continues to take its toll on sales. "The expectations being factored in are that Christmas sales will be considerably negative," said Nobuyuki Oneda, Sony's chief financial officer.
Toshiba's sales were down 5pc in the period as the global economy "entered into a recessionary phase". The company added: "The Japanese economy, impacted by the slowdown in the global economy, is entering an extremely severe economic slowdown that will see declines in corporate profits and stagnant consumer spending.
"As the worldwide financial crisis continues and concerns for inflation grow, global economic trends are unclear and difficult to predict."
