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Japan’s electronics giant Sony cut its annual earnings forecast by 40% on Thursday as the company reported a $196 million loss for the last quarter.

The firm’s net income for the fiscal year ending March 2014 is now expected to total $305 million, according to Bloomberg. Smartphones have eroded demand for digital cameras, camcorders and game players, analysts say, and Sony is struggling to keep up with competitors Samsung and Apple when it comes to mobile devices.

The company’s film and television show division is suffering after some high-profile flops this year, the BBC reports. Sony’s gaming arm, which makes the PlayStation consoles, posted an operating loss of $8.1 million from July to September, compared to an operating profit of $234 million during the same period last year.

[Bloomberg]