According to Bloomberg (Link) Sony may post the biggest 4th quarter loss in 4 years, mainly due to lower demand for Sony’s new PlayStation 3 game console. Bloomberg’s figures are based on the average of projections of 11 analysts. The projections would put Sony’s overall net loss at 75.8 billion yen ($630 million) in the FY 2007 Q4, a rise of almost 14 percent compared the corresponding time frame a year earlier. The losses of Sony’s game division, being the main contributor to the lacklustre results, could reach up to 121 billion yen in the fourth quarter and up to 245 billion yen for the entire fiscal year.

The analysts further expect an overall operating margin of 4.1 percent for FY 2007 compared to the 5 percent aspired by Sony’s CEO Howard Stinger for FY 2008. Hitoshi Kuriyama, an analyst at Merrill Lynch Japan Securities Co., however, believes Sony to fall short of that goal: “I'm expecting a 20 percent price cut this fiscal year, and if that happens, the margin will not reach 5 percent.“

Sony earnings are scheduled to be reported tomorrow.