Sony is Struggling Because of Slumping Blu-Ray Sales

Blu-Ray Sony is warning shareholders to expect poor financial results for its fiscal year ending March 31, 2014. The electronics giant previously expected to pull in an operating income of 80 billion yen ($782 million) over the financial year, but is today adjusting that figure down to just 26 billion yen ($254 million). The sharp reduction — the new operating income estimates are 68 percent down from a February forecast — can be attributed to a pair of somewhat unexpected events. Roughly 30 billion yen ($293 million) of the drop is due to "additional expenses" from Sony's exit from the PC business. The company announced it's to sell its PC division to a Japanese investment fund earlier this year. The second charge is due to what Sony calls "demand for physical media contracting faster than anticipated," especially in Europe.

Read the full story at The Verge.