Sony Corporation has announced its first annual net loss in 14 years and forecasts even a bigger loss this year.

Executives said pressure from sliding sales, competition in gadget prices and a stronger yen all contributed to the decline for the leading Japanese electronics maker.

Sony lost US$1.7 billion in the first quarter of 2008. That's a sharp contrast to its 300 million dollar profit for the same period last year.

The loss contributed to its full fiscal year loss of almost US$1 billion.

Sony says it's closing eight plants but has yet to specify the locations. The company remains on track to cut 8-thousand jobs, meaning one in 20 workers in Sony plants around the world will lose their jobs.