Skip to content
Subscriber Only

Sony’s PlayStation Hedge Backfires as Dollar Costs Surge

Sony Corp.’s strategy to shield its PlayStation game unit from a strengthening yen is backfiring as the currency heads in the other direction this year, leading to losses ahead of a new console debut for the U.S. holidays.

Those currency-related losses are poised to deepen as analysts project a further 10 percent rise in the dollar by the end of Sony’s year in March, based on 74 analysts’ estimates compiled by Bloomberg. That would put the yen at about 106 to the dollar, compared with 96.6 today and 86.7 at the start of 2013. Sony predicts the rate will remain around 100 yen.