After decades of losing format wars (anyone remember the Betamax vs VHS wars?), Sony finally won one in the last decade with Blu-ray. Pity for them that it’s turning out to be a pyrrhic victory.
The Blu-ray optical disc format, once a bastion of hope for reviving the home entertainment industry, is struggling to survive under the assault of video-on-demand and downloads.
In a new financial forecast, Sony has warned of heavy losses primarily due to its exit from the PC business and because “demand for physical media [is] contracting faster than anticipated.”
In two weeks, Sony will announce its financial results. The company expects to post a net loss.