Sony cuts 2013 profit forecast by 40 per cent

Tech giant expects to make only £190m for the year

Sony has slashed its profit forecast for 2013 by 40 per cent, meaning the technology giant now expects to make only £190m.

The company had originally estimated it would make a profit of 50bn yen (£372.4m), but after its Q3 earnings report delivered a heavy loss of 19.3bn yen, it has been forced to adjust the figure.

The firm's Pictures division, which produces films and TV programmes, was hit particularly hard, reporting a loss of 17.8bn yen for the Q3 2013 period compared to an operating profit of 7.9bn yen last year.

"The current quarter reflects the theatrical underperformance of White House Down, while the previous fiscal year included the strong theatrical performance of the Amazing Spider-Man," Sony said in a statement.

Declining year-on-year television licensing of films is also thought to be linked to Sony Pictures' deteriorating performance.

Sony has also been hit hard in the steadily declining television market, reporting a 9.3bn yen loss for the quarter, while its games division, which is soon to launch the PlayStation 4 console, has also reported a loss of 800m yen, compared to 2.3bn yen last year. The company cut the price of its PlayStation Vita handheld console in August 2013, which has affected its profits in the sector.