Sony to post huge $1.1billion loss

Sony shares plummet, while PS3 is set to cost $299 this Easter in the US

Sony is set to post an operating loss of a whopping $1.1billion for 2007-2008, according to respected business media outlet Nikkei.

The loss is the company's first in the past 14 years, and the second since Sony went public in 1958, reports Edge this week.

The original forecast was for a profit of around $2.2billion for the same period.

"The reasons behind this anticipated loss are typical of many markets in Japan," adds Edge. "A global recession continues to curb foreign demand for Sony's luxury items, while the strong yen continues to interrupt the company's trade."

Sony shares plummet

Shares in Sony plummeted down 8 per cent after the news broke. Sony is scheduled to announce its quarterly earnings results on 29 January.

In other news, respected US games industry analysts Michael Pachter is predicting a PS3 price drop in the US this Easter, claiming that the PS3 will drop to an RRP of $299 to maximise sales over the busy Easter hols.