Sony Updates On How Coronavirus Is Impacting Its Global Business
Sony has provided a light breakdown of how the coronavirus is impacting its games, music, film and TV and electronics divisions. The breakdown is as follows:
Games and network services: “Sony estimates that there will be no material impact on this business for the current fiscal year. Although no issues have emerged so far, Sony is carefully monitoring the risk of delays in production schedules for game software titles at both its first-party studios and partner studios, primarily in Europe and the U.S.”
Music: “Especially outside of Japan, the business has started to be affected by delays in new music releases, interruptions in supply chains for CDs and other physical music media, and a decrease in music licensing resulting from both lower advertising activity and delays in production for motion pictures and television productions. Concerts and other live events around the world are being cancelled or postponed, including all Sony-sponsored performances and events in Japan.
Pictures (film and TV): “The motion pictures business as a whole is being affected by shutdowns of movie theaters around the world and various restrictions on people’s movement, leading to circumstances including early termination of theatrical runs and delays in release dates. Sony has temporarily shut down all of its film and television production, resulting in future changes in theatrical release dates for some titles.
Electronics Products & Solutions: “In addition to the shutdown of Sony’s manufacturing plants in Malaysia, the flow of resources from suppliers in Asia has become unstable, having a wide-ranging impact on the manufacturing of goods in this segment. Sales of Sony’s products are also being affected by lockdowns around the world and retailer closings.”
Sony said that it expects its financial results due out next spring to reveal a hit but it didn’t quantify the amount. The corporation has told the majority of its global staff to work from home as a result of the crisis.
In the release on Sony’s website, the corporation also notes that it has temporarily closed manufacturing plants in Malaysia and UK in accordance with local lockdown rulings. Four plants in China have restarted operations in increments.
Japan is seeing a spike in coronavirus infections and earlier this week the country’s leader Shinzo Abe postponed this summer’s Olympic Games which were due to be held in Tokyo.
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