Sony updated its financial expectations for the fiscal year ending March 31st. Instead of an 150 billion profit as forecasted in October 2008, Sony expects now a 150 billion yen loss. This kind of symmetric flip from profit to loss is an interesting picture showing how things turned completely to the bad within a very short time for Sony. Sony also revised the Sales and operating revenue from 9,900 billion Yen to 7,700 billion Yen.

Sony attributes the revised forecast in the Electronics sector to the deterioration in the business environment brought on by the slowing global economy and an Intensification of price competition. Also the high Yen is hurting the bottom line for Sony. For the gaming sector Sony says that the operating income (loss) is expected to be lower by approximately 30 Billion.
The high yen and the lower-than-expected sales are the reasons for it.
Lower-than-expected sales is a very weak reason to mention. The whole technology news community is saying since months that the PS3 is too expensive. Not that the PS3 would not be worth $400. The problem is that the Xbox 360 and the Wii are just so much less expensive and offering for the most part similar gaming experiences. And by the way Blu-ray is not a selling argument anymore for the PS3.
Numbers via this Sony announcement.