Sony has slashed its full-year net profit forecast by nearly 40% to $670m amid a mounting defective battery crisis and problems with its PlayStation 3 console.
Sony said in a statement that it would take a hit of about $400m in the year to the end of March from a series of recalls of its lithium-ion laptop batteries on fears that they could catch fire.
It also warned of an increased operating loss in the games business due to a price cut in Japan for the upcoming PlayStation 3 console and weaker than expected sales of the PlayStation Portable.
