The Walkman and PlayStation maker has lost its innovative edge, falling behind Apple and Samsung Electronics, and guidance for the current financial year has failed to impress.

"I didn't see anything positive in there," a trader at a U.S. bank said. "There is really nothing in there that can justify buying the stock."

"You see the loss narrowing in the TV business. That's fine, but I don't see any future in the TV business, so it doesn't matter what they do."

He said Sony's forecast of 33 million smartphone shipments this business year looked optimistic because its supplier Qualcomm faced capacity constraints and Qualcomm's main priority was to supply Apple Inc, which means Sony may not secure enough chips for its smartphones to meet its target.

Sony shares were at their lowest since September 1980, said the company citing Nikkei Quick data.

(Reporting by Dominic Lau; Editing by Edwina Gibbs)

• A Permanent Economic Emergency