Sony has slashed its profit forecast for 2006, setting aside 51 billion yen ($429m; £230m) to deal with the costs of its recent laptop battery recall.
The battery recall has affected almost every major laptop maker
The electronics giant has cut its pre-tax profit forecast for the year to 31 March 2007 by 53% to 70 billion yen.
Computer makers including Dell, Apple, Toshiba and Lenovo are recalling about eight million Sony batteries.
The recalls followed evidence that, in certain circumstances, the batteries could overheat and catch fire.
Sony said its yearly profits would also be hit by the delay to the launch of its new Playstation3 games console in some markets and a reduced retail price in Japan.
It also added that sales of its Playstation Portable hand-held games console were expected to miss forecasts.
The PS3 business is expected to make a loss during its launch phase in the current financial year.
But the company said it would enable the company to "realise a significant improvement in profitability during the financial year ending 31 March 2008".