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Sony Revises Earnings Statement with Income Drop as Demand for Disc – Based Media Shrinks

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Sony has revised its February earnings forecast, blaming the shrinking demand for disc ? based media and its costly exit from the PC business. The Japanese tech giant, who invented iconic tech products like the PlayStation and the Walkman, has been struggling with stiff competition from companies like Samsung and Apple. In February, the company revealed its plan of selling out its Vaio PC business.

Revision of February Earnings Forecast

The company earlier predicted that it would attract an operating income of ?80 billion, or approximately $783 million over the financial year. However, its latest financial statement revealed that Sony is now expecting to collect only ?26 billion, or about $255 million.

The Japanese tech giant blamed its cash dip on two events: its added costs in ditching the Vaio PC business and the diminishing demand on its disc ? making business. Sony said that it is now facing a rapid decline on the latter?s demand, particularly in Europe.

“Primarily due to demand for physical media contracting faster than anticipated, mainly in the European region, the future profitability of the disc manufacturing business has been revised,” Sony wrote on its statement.

Huge Changes as Optimal Solution

The company “has determined that concentrating its mobile product lineup on smartphones and tablets and transferring its PC business to a new company established by [Japan Industrial Partners] is the optimal solution.” Significant changes will also be made in its TV business. “Sony has decided to split out the TV business and operate it as a wholly-owned subsidiary. The targeted time frame for this transition is July 2014,” Sony explained in its statement.

Multimedia Freebies for Z1, Z2 and Z1S

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Sony pledged on Thursday to give its customers the chance to enjoy multimedia freebies worth hundreds of dollars. The promo, effective until July 31 this year, will give owners of Xperia Z1, Z2 and Z1S up to $350 worth of multimedia freebies from Garmin, PlayStation Mobile, Bitcasa, Box, Evernote and other partners. Free games, movies, music, apps and other services await the lucky owners of the aforementioned models.

Todays technology has given rise to on ? demand video streaming from services like iTunes and Netflix. This also means that Sony?s Blu ? ray and DVD manufacturing business is off to face obsoletion. The company?s actual earnings for the fiscal year will be revealed on May 14.

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