Sony's Consumer Products and Services division has suffered an operating loss of ¥229.8 billion (NZD $3.67 billion) for the full year ended March 2012.
The division turned a profit of ¥10.8 billion (NZD $172 million) in 2011.
Sony has cited a PlayStation 3 price cut and declining PlayStation 2 sales as major contributors to the overall figure.
Hardware sales were down 18.5 per cent to ¥3.13 trillion (NZD $48.7 billion) across the entire company, with games, PCs, LCD televisions and digital cameras all hit by poor sales.
Sony sold 13.9 million PlayStation 3 units compared to 14.3 million the previous year, 6.8 million PSPs compared to 8 million, and PlayStation 2 console sales dropped from 6.4 million to 4.1 million.
Hardware sales predictions for the next financial year are also low, with combined PlayStation 3 and PS2 sales of 16 million units compared to the 18 million sold in the last financial year. PSP and PS Vita sales are the sole bright spot, expected to rise from 6.8 million to 16 million.
Software sales are forecast to remain steady at around 196 million units.
In the past year, software sales for the PlayStation 3 increased from 147.9 million to 156.6 million, while PSP game sales fell from 46.6 million to 32.2 million. PlayStation 2 game sales also dropped, from 16.4 million to 7.9 million units.
For the entire Sony corporation, sales were ¥6.49 trillion (NZD $100.9 billion) for the full year, with a net loss of ¥456.7 billion (NZD $7.3 billion) registered, compared to a loss of ¥259.6 billion (NZD $4.14 billion) the previous year.