Sony has reported a massive 72 per cent fall in profits for the second quarter of 2008 as the credit crunch takes its toll, and the knock-on effect could hit UK technophiles in their pockets.

Camera sales were particularly affected by the crunch as net income for Sony Corp. declined to ¥20.8billion (c.£1.3million), with sales falling half a per cent.

The knock on effect of this was that operating profits dropped to ¥11.05billion, compared with ¥111.62billion in the same period last year.

What does that mean for us?

So what does this mean for the UK consumer? MSN Money's James Andrews told TechRadar that the weakness of the pound, and the problems that tech companies are dealing with in the deflated market, will make it much more expensive for tech junkies in the UK.

"The strength of the economy has a huge impact on the price of imports into Britain – and technology is one of our biggest imports," said Andrews.

"For example, if a Sony PS3 cost ¥50,000 to build in Japan – you would have to stump up more than £350 this week to get one, but could have bought the same console at the same price in yen for £207 in December."

Raising prices

"Unfortunately for Sony, with huge markets in the US, Europe and the UK, the yen has become more expensive against the pound, euro and the dollar.

"This means, through no fault of its own, its products are more expensive now than a year ago. Sony faces the choice of either losing profit or raising its prices in countries outside Japan."