Sony has been forced to slash its earnings forecast following a first quarter operating loss that has created 'almighty problems' for the electronics giant, reports The Times. First quarter net losses amount to around ¥7.3 billion ($69.4 m) forcing the company to dramatically cut its forecast earnings from ¥80 billion ($712 m) to ¥10 billion ($89 m). The problems are as a result of poor performance in its TV division as well as falling retail prices of digital cameras. Recently appointed chief executive Howard Stringer and president Ryoji Chubachi are expected to unveil a new strategy in September.