Sony Delays Sale of LocationFree TV Box

Laptop computers are on display at an electric and electronic store in Tokyo Monday, Oct. 16, 2006. Sony slashed its fiscal year profit forecasts Thursday because of costs from a massive global recall of laptop batteries and price cuts in Japan for the next-generation PlayStation 3 video game console. Sony Corp. now expects group net profit of 80 billion yen (US$673 million; euro536.5 million), down from the 130 billion yen (US$1.1 billion; euro880 million) it had forecast in July. (AP Photo/Koji Sasahara) (Koji Sasahara - AP)

In recent weeks, almost every major laptop maker in the world, including Dell Inc., Apple Computer Inc. and Lenovo Group, has been recalling Sony batteries.

Sony said the number of battery packs being recalled worldwide would total 9.6 million, racking up an extra cost of 51 billion yen ($429 million).

Such costs may grow because that estimate doesn't account for damage compensation that companies may demand. Toshiba has said it may demand compensation.

The problem stems from lithium-ion batteries that can short-circuit, causing some computers to overheat or burst into flames.

Sony also pointed to sluggish results in its video game unit. Last month, Sony said it had run into production problems for its PlayStation 3 video game console, expected to go on sale in the U.S. and Japan in November.

Sony delayed its introduction in Europe until March next year because of the manufacturing problems.

Another factor expected to hurt earnings is the price cut Sony announced for the machine in Japan.

The battery recall and other problems are threatening Sony's brand power at a crucial time because its electronics profitability had been recovering under new management heading the revival effort.