Sony Corporation has reported a net loss of £216 million for the second quarter ending September 30th, citing poor sales of LCD TVs as a major factor.

Consequently, Sony has amended its forecast for the year, now predicting a further 50 percent loss over its previous forecast, amending it from £480 million to £720 million for the financial year ending March 31st, 2012. The company cited the floods in Thailand, which are currently affecting production of components, as one of the reasons why forecasts have changed so drastically.

As part of a new strategy Sony will split its TV business into three separate divisions that focus on LCD TVs, next-generation TVs, and outsourcing, and will scale down production by half, forecasting production of 20 million units by 2014.

The company’s film studio division, Sony Pictures, recorded profits of £165 million, a turnaround from the £38 million loss from the same quarter last year. The success of this division was said to be largely down to the sale of Spiderman merchandise.

Despite concerns that the widely-reported hacking of the PlayStation 3 would affect console sales for Sony’s Consumer Products and Services Division, sales were up from 3.5 million units to 3.7 million for the quarter compared to the same time last year. Sales of the PSP were also up by 200,000, from 1.5 million to 1.7 million.

With Sony in the process of acquiring the remaining 50 percent of mobile phone maker, Sony Ericsson – in a deal estimated to be worth almost $1 billion – the Japanese consumer electronics giant will be looking to the smartphone industry to help improve its balance sheet.

Revenue for Q2 was down by 9.1 percent from $22.2 billion to $20.5 billion, while net losses were reported at $350 million, compared to profits of $398.3 million year-over-year.