Sony Loses $1 Billion

In a recession, luxuries are the first thing to go, and that's not good for electronics companies like Sony, which is expected to report a $1.1 billion operating loss in the fiscal year ending this March. It will mark the first time the electronics giant has reported a loss since 1995. The bleak forecast comes on the heels of job cuts, lowered spending and the shuttering of several plants last month. Historically, losses on Sony’s electronics side have been offset by gains in other divisions, like financial and video games. All sectors are now beset by problems. The strong yen hasn't helped. As the dollar has weakened from 108 yen a year ago to 90 yen today, overseas sales have become less valuable. "We need to rely more on other regions, and not depend so much on the U.S.," Sony President Ryoji Chubachi said recently.