And weak consumer spending in EU/US. US revenue is down 18% for the first six months YoY.
It's also Sony's fault for not having kept up with the latest trends, they don't have a strong tablets division, they are only just bringing their mobile phone division in house when people have been telling them to do it since 2008, they haven't brought nice high margin, expensive OLED TVs to market even though they could, tomorrow. Sony are a company that has missed too many boats and I would now not rate them as investment grade.
I'm not even sure Kaz will fix anything when he takes over as CEO, the corporate culture at Sony is not conducive to being focussed and early to a market where speed and efficiency matter more than anything else.
Even so, good PS3 sales, the one decent spot of news for them right now. Vita should do well too.