Sony may be on the verge of recording its first practical loss in 14 years, sources for CNN say. The company is believed to be recording an annual loss equal to about $1.1 billion attributed directly to the poor world economy and its effect on the Japanese Yen, which has strengthened at the expense of Sony's primarily international business. As sales have dropped, the company and others have been pushed to discount electronics and thus reduced Sony's practical income.

Sony spokeswoman Mami Imada calls the claims "speculation," though the company is expected to formally confirm or deny the report when it posts results on January 29th.

The company has already had to cut 16,000 jobs and is believed to potentially require more to stem its losses should the report prove accurate.

While Sony's core BRAVIA TV lineup has lately proven successful, the company is known to have had trouble with its TV studio business and has regularly had difficulties with its PlayStation 3 console, whose higher price has turned customers towards the Nintendo Wii and Microsoft Xbox 360, particularly in North America.