Sony has revised its financial forecast for the fiscal year ending March 2015 and it's not good news for a company that seemed to be turning a corner. It has quadrupled its forecast losses for the year and much of that is down to unimpressive sales of its Xperia devices.
It previously predicted to its stockholders that its net loss would be 50 billion yen (£285.7 million), but that has now been revised to 230 billion yen, an "impairment charge" of 180 billion yen.
The company has seemingly changed its strategy therefore when it comes to smartphone sales. Where previously it was attempting to achieve significant growth in volume of sales, it is now focusing on reducing costs in that department, reducing risks in the process. That will more than likely result in a greater emphasis on its premium, flagship devices and less on entry-level and midrange phones.
Other departments feeling the squeeze will be its television and game platforms. While the PlayStation 4 has been an outstanding success in sales, breaking all records for a games console in less than a year since launch, significant investment in other areas, such as the Sony's cloud gaming platform PlayStation Now will see the company take a hit in the short term.