Sony Corp. CEO Kazuo Hirai is running out of ways to reverse the fortunes of the faltering consumer electronics maker.

The Tokyo-based firm said it would report a larger-than-expected full-year loss due to poor performance in its smartphone business. In a statement issued Wednesday, the firm announced it was taking a writedown of ¥180 billion in the value of its phone unit owing to heavy competition in the market. Shares in Germany dropped by the most in 10 months in reaction to the news.

Hirai has been working to turn the company around by pushing entertainment and game content, consoles and mobile devices as demand for televisions and compact cameras has slumped. But with the Xperia smartphone now faltering, Hirai's only other options for reviving the company are its movies and PlayStation video game business.