Sony has lowered its earnings forecast for the business year through March 2013, from 30 billion yen to 20 billion yen.
Sony expects to shift 15.5 million TVs, down from a May projection of 17.5 million, reflecting the waning demand for televisions that pushed rival Sharp into a 94 billion yen operating loss ($1.2 billion) for the June quarter.
Sony’s gaming division alone saw a $45 million (£28.9m) operating loss for the quarter ending June 30th. Sales decreased by 14.5 per cent, which was largely due to slowing sales of PS3 and PSP.
"Primarily due to the lowering of the annual unit sales forecast for portable hardware, sales are expected to be significantly lower than the May forecast," Sony said in a statement.
"Due to the decrease in sales and the impact of unfavourable exchange rates, operating income is expected to be significantly below the May forecast. Sales are expected to be essentially flat and operating income is expected to decrease significantly year-on-year."
Want to receive up-to-the-minute tech news straight to your inbox? Then click here to sign up for the completely free PCR Daily Digest and Newsflash email services. You can also follow PCR on Twitter and Facebook.