Sony reports a net loss of $1.25 billion despite strong sales from PS4 and smartphones

Sony revealed its financial report on Wednesday that the Japanese electronic giant his facing a net loss of ¥128.4 billion ($1.25 billion) in the fiscal year of 2013. In addition to the report, the company predicted that the company is expecting a loss of ¥50 billion ($489 million) for the current fiscal year.

The news would be surprising considering that Sony enjoyed profits from its smartphone and gaming division. The gaming division reported that it enjoyed the sales of up to $9.5 billion which is up by 38.5% year-over-year. Sony’s mobile division earned a revenue boost of 38.5%.

The company revealed that overall losses were due its restructuring. Sony’s VAIO unit was one of the reasons. It was reported in February that the company was selling the entire PC division to Japan Industrial Partners for an undisclosed amount, which lead to layoff of up to 5,000 staff on a global scale. Though selling off the business should have helped Sony to gain profits in some way, but the company had to record write-downs for unused components in their inventory, and had to compensate their suppliers. It was also pointed out that Sony’s disc media business was also the reason company faced a loss.

As a part of the company’s ‘One Sony’ restructuring plans, the company is concentrating on TV division, and also would expand towards medical sector. Sony will also be concentrating on making 4K TV over the more premium OLED counterparts. After doing so, it would expand its cloud services along with PlayStation Now and its new TV platform.  Will it be enough to break the almost consistent loss is something that remains to be seen.

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