Following the news that Japan’s Sony Corp reported a second-quarter operating loss that was narrower than analysts had estimated, The company posted a net loss of 136 billion yen for the quarter and held its full-year net loss forecast at 230 billion yen.
Please find below commentary from Jon Copestake, Retail Analyst at The Economist Intelligence Unit – I hope this is of use to you for any future articles / updates:
“A narrowing loss hint that the light is at the end of the tunnel for Sony which has struggled to implement a number of strategic turnarounds over the last few years, most recently in May. The strong performance of its console business presents a further bright spot with PS4 sales outstripping those of 8th generation rivals The Wii U and Xbox One. However, with mobile gaming becoming more prevalent long term focus may be on other Sony divisions, which are continuing to struggle.
The marketplace for smartphones and tablets is becoming more crowded and Sony’s decision to scale down smartphone forecasts in light of competition, especially from China, reflects a broader trend among consumer electronics firms. During this transitionary period Sony faces the difficult question of where to focus its efforts next. Wearable technology is already the focus of many tech firms and it seems that Sony needs to lead the competition with another flagship product like the “Walkman” that captures the markets imagination rather than follow established trends. That said the firm may prefer to focus on getting its balance sheet aligned before it embarks on a costly and high risk attempt to launch the next big thing.”