Sony’s move to abandon PCs has contributed to a massive net loss of AY=128.4 billion (US$1.25 billion) for the year to March 31, and it has forecast a loss of AY=50 billion for the coming 12 months. A year earlier, Sony made a profit of around AY=41 billion, its first in many years. Its latest plunge into the red is slightly less deep than it forecast two weeks ago. The company reported revenue of AY=7.77 trillion for the period, up 14% on a year earlier. Earlier this month, Sony revised downward its forecast net loss for the year to AY=130 billion, blaming costs related to its exit from the PC business as well as impairment charges related to its overseas disc manufacturing. It slashed its operating profit estimate by nearly 70% to AY=26 billion.

The PC business contributed AY=91.7 billion in operating losses. Of that, AY=58.3 billion was related to Sony’s decision to sell its PC activities. Sales and operating revenue in the segment were up nearly 30% to AY=1.63 trillion thanks to stronger phone sales and favorable foreign-exchange rates. But the segment still suffered an AY=75 billion operating loss, compared to AY=97 billion a year earlier. The strong sales that Sony has seen with its hit PlayStation 4 gaming console, launched in November in some markets, were overshadowed by enormous marketing expenses. Sales and operating revenue in the Game segment jumped nearly 40% to AY=979 billion, but the segment booked an operating loss of AY=8.1 billion, down from an operating profit of AY=1.7 billion a year earlier.