Sony Corp (6758.T) shares fell nearly 7 percent in their biggest tumble in a year after the electronics maker disappointed investors with a cautious forecast and worries mounted the euro could dull the pace of its recovery.
Sony, which once ruled the game and electronics industries with the PlayStation console, Walkman music player and Trinitron TV, is also struggling to regain its reputation as an innovator of hit products, clouding its long-term prospects.
Chief Executive Howard Stringer receives high marks from investors for cutting much of the fat out of the sprawling conglomerate through a series of major restructurings since the former journalist took the top job in 2005.
"It seems to me they're barely managing to keep up," said Takeshi Osawa, senior fund manager at Norinchukin Zenkyoren Asset Management. "In the past they often developed new products with which to compete.. but at this point it seems they're just sort of making one product after another."