Unlike some tech sectors, and ABC’s good news notwithstanding, Sony has posted staggering losses in its first quarter report. The news is especially difficult since Sony hasn’t had a loss in over 14 years of business.

The Japan-based business has a revenue somewhere in the neighborhood of $81 billion, and the $1 billion loss is hailed as the beginning of a long downward spiral for Sony. They saw losses in every sector of the company. On the phone side, the crowded phone market and failing consumer confidence did nothing to enhance phone sales. The gaming sector tumbled nearly 20 percent. And electronics, typically a Sony breadwinner, fell by a similar amount. The bleak news has prompted Sony analysts to predict another $1+ billion loss for the next fiscal year.

As a result of the losses, Sony is cutting back. Sony currently employs 180,500 people. They will shave 16,000 of those jobs. Sony operates 57 manufacturing facilities. They will only have 49 a year from now.

Sony’s struggles are not a surprise. Over the past months-even years-as cutting edge technology and international businesses have ramped up research and production, Sony has taken a back seat in terms of progress. Howard Stringer, never one to give up, has taken urgent action to forestall the slump-to little avail. His first step was an internal restructuring of the company in hopes of a more integrated and unified front. Next, he performed a bold step by shuffling aging managers out with younger blood. Meanwhile, he cut costs where he could.

So far, these actions have not saved the day. The cards seem to be against Sony. Odds are high against a recovery, even if the economy swings back. But one glimmer of hope continues to persist, according to Asset Management executive Fuji Ando. He predicts that they can regain an ascendancy, ” but it would all depend on whether they will be able to start making popular products.” That remains to be seen.