Net profits are expected to be Y80 billion, 38% lower than its earlier estimate of Y130 billion. The projected profits fall comes as Sony struggles to turn round its electronics business - under the leadership of Ryoji Chubachi, chief operating officer - through a group-wide restructuring spearheaded by Sir Howard Stringer, chief executive. The decline is largely drawn from recent problems with its lithium ion batteries and in its games division - the delay to launch the PlayStation 3, Sony's most important product launch in years, with a lower price for it and a reduction in initial shipments.