41% Music Decline Helps Sony Profits Fall 95%
Sony posted a whopping 95% decrease in profits last quarter compared to the same quarter last year. Gaming was was the biggest disappointment down 97%, but music did its part to contribute to the downward spiral. Even when factoring out the expensive purchase of BMG's half of the former Sony BMG,music profits declined 41% driven by a 22% decrease in sales.
Sony has avoided the recent wholesale staff cuts made by other labels favoring more targeted layoffs. But as losses mount and the world economy worsens, sources hint that Sony's layoff scalpel could become a hatchet.