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Sony to report $3.2 billion annual loss

The new PlayStation Portable 'NGP' is displayed at PlayStation Meeting 2011 in Tokyo Thursday, Jan. 27, 2011. (Shizuo Kambayashi)

May 23, 2011 12:00:00 AM PDT
Sony Corp. is expecting a loss of $3.2 billion, reversing its earlier projection of a return to profit.

The revision is mainly being blamed on the impact from Japan's earthquake and tsunami.

The company is also dealing with a challenge to its reputation after a massive security breach in April that hit more than 100 million PlayStation Network accounts.

Sony's official earnings report is expected Thursday.