Sony Pictures troubles go beyond box-office flops

The firm says the studio is not for sale...

Sony Pictures troubles go beyond box-office flops

Sony Corp has revealed that it will be forced to write almost $962m (€903m) off of the value of its film and TV division.

The move comes as the studio's film output has failed to draw in punters - its 2016 Ghostbusters reboot and Inferno (based on Dan Brown's novel by the same name) were two titles which drew smaller than expected crowds.

Sony's entertainment business has been struggling - this has been off-set by growth in its gaming division

It has also announced that it has paid a goodwill impairment charge relating to the acquisition of Columbia Pictures Entertainment in 1989 (this happens when an asset is found to be worth less than the value stated in a company's financial reports).

Sony also says that the decline of DVD and Blu-ray has gathered pace and has had a larger than expected impact on its bottom line.

“Make no mistake. Sony Corp.’s commitment to Sony Pictures Entertainment (SPE) remains unchanged. The value of high-quality content continues to rise. As we have stated on many occasions, including at SPE’s All Hands meeting at the end of last year, Sony Corp. sees SPE as a very important part of Sony group, and will continue to invest to achieve long-term growth and increased profits in this space," a statement co-signed by a number of the corporation's executives reads.

The firm will publish its quarterly report for the three months to the end of 2016 on Thursday.