Earlier this month Japanese business paper Nikkei predicted Sony Corp. will likely report operating losses in the range of ¥100 billion ($1.12 billion USD) this March 31st, its first group operating loss in 14 years. The paper cautioned Sony's losses could even double to ¥200 billion ($2.2 billion USD) by that time. It seems Nikkei's spidey senses were sharp that day, as Sony itself has since stepped forward and warned of an even larger ¥260 billion ($2.9 billion USD) annual operating loss.

Sony had previously predicted a ¥200 billion profit come March 31st. Their newer, gloomier forecast is made in light of decreased demand for Sony's products, particularly from its core electronics division. In fact a majority of this ¥460 billion swing from profit to loss was attributed to it underperforming electronics like televisions, and portable music players. Meanwhile, its PlayStation business too is expected to see losses grow to ¥30 billion ($338 million USD).  To top it all off, a stronger currency (yen) is hampering exports for Japanese electronics manufacturers, and hurting business overall.

We know Sony has already prepared for some serious spring cleaning in an effort to trim investments and reduce costs by up to ¥100 billion a year. Its loss-making LCD TV business was a point of focus for Sony CEO and chairman Sir Howard Stringer, who confirms in a news conference earlier today that his company will close one of its two remaining television manufacturing facilities in Japan by the end of March.

Indeed, Stringer is looking to shake things up in order to get the company back in ship-shape. He's previously touched on shifting overall business from a high-cost product-based model to one more based on commodities, with further investment in built-in software.  The company will also step up in restructuring, with its cost-cutting target now doubled to ¥250 billion ($2.8 billion USD).  Speaking at the conference:

"We simply have no alternative but to dramatically change the fundamental ways we view our business as well as the way we create, manufacture and distribute our products."

This game plan, as well as the cost-cutting measures to its electronics operations, haven't won Stringer many fans within Sony's cadre of engineers and management alike in Japan. This rift is unfortunate, considering how uniting the myriad "factions" at Sony was one of Stringer's most important goals when he first announced leadership back in 2005.