Sony last week saw a massive slump in the TV market share, has now said that they expect to post a monster loss of $3.4 billion.
The news comes after the Japanese company was forced to take down their PlayStation Network for three weeks earlier this month, after it was hacked by people angry with the company’s attitude to a recent legal case involving a Playstation console user who modified a Sony code.
Sony, who will report its earnings late on Thursday night, has struggled for several years as consumer’s desert the brand for products made by Samsung and Apple.
Sony lowered its net outlook for the fiscal year that ended in March to a loss of 3.14 billion from the $750 million dollar profit it forecast in February. In the previous fiscal year, the company racked up a loss of $350m.
The company said that three years of net losses, combined with an uncertain business outlook in Japan following the March 11 disaster prompted the decision to cover deferred tax assets, which are credits that can be used to offset taxes on future profits.
Recently Sony’s Bravia sales fell by 2.9 to 4.51 million sets, according to DisplaySearch research.
Sony, who is now using third party manufacturers to make the bulk of its products, has been forced into third slot in the highly competitive TV market behind Samsung who snared the #1 slot. LG reclaimed the number two spot from Sony with 14 percent, with the Japanese make following in third place with 9.4 per cent.
Both Samsung and LG, who recently launched their 2011 Smart TV range in Australia saw sales jump 0.7 percent and 1.8 percent respectively compared to the previous quarter.
The global flat panel TV market grew 8.8 percent year-on-year selling a total of 47.9 million sets with one in every three sets sold made by Koreans.
The Wall Street Journal said that Sony’s downward revision serves as a reminder of the substantial impact that the earthquake and tsunami that struck Japan’s northeast coast has had on the company even though consumers and investors have been paying more attention to the recent hacker attacks on its PlayStation Network.
In the wake of the disaster, the Japanese consumer-electronics maker temporarily shut 10 plants, including plants that make batteries, chips and smart cards in Fukushima, Miyagi and other prefectures in the area.
The dismal earnings projection is set to see Sony shares battered when the market opens tomorrow in Tokyo and in the US overnight.
Sony has already seen a 23 percent slump in their shares since the March 11 natural disaster.