Sony forecasts a $2.9 billion loss

Sony has just forecasted a jarring $2.9 billion operating loss, in the running fiscal that ends in March 2012. However, the new CEO Kazuo Hirai has vowed to turn things around, before it becomes too late.

The primary reason leading to this setback is that the company has found it tough job to battle a strong yen and flooding in Thailand, which ruptured supplies and in a weak economy. Sony is also finding it difficult to keep up the pace with innovative rivals, such as Apple Inc and Samsung Electronics.

It would not be easy for the company to regain its foot in the market under new leadership, as it is falling short of sharpness and a competitive spirit to compete with other leading tech giants - such as Apple and Samsung.

It seems that the company has developed over time some structural problems and it could take years to fix them. Sony is failing to innovate and produce industry leading products in almost every major area of its business.

Hirai, who is a Sony veteran, is known for reviving the PlayStation gaming business. He has been promoted to guard the company from the uprising problems and to formulate a new strategy. Hirai is expected to rejuvenate the innovative spirit that made Sony a king of the global consumer electronics industry, back in the 1980s and into the 1990s.