While it did predict the downturn earlier in the year, Sony has confirmed that it is looking at an impending loss in Q4 of this year.
The news comes at the same time as the company's announcement of a loss in Q2 of this year. While Sony produced profits of 31 billion Yen during Q2 last year, this year it has managed a loss of an estimated 27 billion Yen during the same three months.
Discussing the reasons for the poor results, Sony blamed everything but itself: citing floods in Thailand, a strong Yen and poor demand for its products in Europe and America. No mention of the hacking and security blunders that severely dented its reputation as a trustworthy organisation.
With Sony's planned purchase of Ericsson's stake in the Sony Ericsson handset joint venture, profit is certainly set to suffer some more. However, with the Japanese electronics maker set to receive 100 per cent of the profits from their mobile handsets from 2012, things could turn around a little next year.
Sony also hopes to turn around this poor annual result - which equates out to a loss of 90 billion Yen - by restructuring its TV ventures. Its line of Bravia TVs has been doing worse than expected, but Sony apparently has some covert plans to improve this and make that part of their business turn a profit by 2013.
With Nintendo and Microsoft both rumoured to have new consoles in the works, Sony will need to do likewise, perhaps in 2013, to turn things around. However, the company would need to be more on the ball than it was with its PS3. Releasing the system a year late and with an inflated price tag meant that the console didn't achieve the same success as its predecessor.