Sony, one of the most dominant and recognizable technology brands on the planet, is not immune from these troubling economic times.

The keeper of such brands as the PlayStation 3, Bravia TVs and Walkman digital audio players is expected to post an operating loss of around USD $1.1 billion, or 100 billion yen, for the 2007-2008 fiscal year. Such a loss would be a first for Sony in 14 years, and only the second red year since the company went public in 1958.

According to Nikkei, via Reuters, the loss stems from less than stellar sales along with a stronger yen. Also, depending on how inventory looks for the first quarter of 2009, the loss could grow, even double, to around $2 billion. The market did not react kindly to the news, as Sony's stock on the Nikkei exchange fell off as much as nine percent, shaving $2 billion off of its $22 billion overall market value. Many originally believed Sony would be posting a profit of around $2 billion (200 billion yen). Mami Imada, a spokesperson for Sony, said the loss figure was speculation and declined further comment.

Such a loss will likely see demand for a new company restructuring plan. Sony is already planning on shutting down some of its "major divisions", along with laying off 16,000 employees, 8,000 of which are salaried positions. "I think there's a good chance the company will further accelerate its restructuring from what has been announced in December," said Kazuharu Miura, an analyst with the Daiwa Institute of Research. 

"Sony could reduce the number of products it offers, and it may also have to consider selling off its financial unit," said JPMorgan analyst Yoshiharu Izumi. "Even though external factors are the main reason (for the likely loss), the management team is partly the cause for the long delay in turning around its TV business," he added. "They may have to take responsibility for that since the company is cutting personnel now."

While the economy is not being kind to Sony, its rivals are not sitting pretty, either. Toshiba and Panasonic, both of whom are considered to be Sony's primary rivals across several different sectors, are also expecting turbulence in the nerar future. Analysts are expecting Toshiba to post a loss this year as well (its first in seven years), which led to its stock falling eight percent. As for Panasonic, its "expected to slash its outlook and step up restructuring measures."

The one market where Sony's failure is ever present is in video games. The PlayStation 3 finds itself in third place in North America and Europe, as well as third in total units sold worldwide. While the Xbox 360 from Microsoft isn't a hot commodity in Japan, its dominance over the PS3 in the States and across the pond in Europe is spelling doom for Sony, along with the Nintendo Wii (almost) outselling the 360 and PS3 combined.

While Sony won't be in the tech obituaries anytime soon, the tech giant is going to face some rough times in the coming months. With any luck, the Sony that emerges on the other side will be a stronger one.