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Sony CEO Apologizes as PS4 Maker Restructures for Growth

Chief Executive Officer Kazuo Hirai apologized to investors after the company forecast a sixth loss in seven years, and he pledged that his restructuring efforts would fuel the electronics maker’s long-term growth.

“Sorry that we failed to meet shareholders’ expectations,” Hirai said at the company’s annual meeting in Tokyo. “We will bear responsibility to complete restructuring in fiscal 2014, with a strong sense of crisis and without further delay.”

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bloomberg.com
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DLConspiracy1158d ago

Kind of scary.. Hope they get it together. SONY I mean. It affects everything they do NOT just PS4. Including the music software I use for a living.

bicfitness1158d ago (Edited 1158d ago )

Read the article? Its the TV buisiness that's killing their profit, movie, cellphones and gaming are all doing quite well. He's turning it around, its just not happening fast enough for some investors. Its all written in the article. No concern trolling is necessary.

Septic1158d ago

"No concern trolling is necessary"

Alright calm down mate. Its not exactly trolling is it? (Hardly on the level of what you do on here).

But yeah, I do agree its a lot of unnecessary gloom and doom from investors.

"“The shocking thing for me was too many excuses,” Renate said. “Sony is really going down.”"

This just sounds like a bit too much panic. I think Sony are recovering from difficult times.

"Sony has lost 85 billion yen ($831 million) since Hirai became CEO in 2012 "

That's A MASSIVE loss so naturally, investors will be panicking but long term, I'm confident Sony will do well. Their PlayStation division alone is set to make a massive profit judging by the incredible momentum it seems to have.

Volkama1158d ago

"with a strong sense of crisis"

^^That is from the CEO of the company.

It is cute that you are more confident, but I don't think the OP is necessarily trolling.

DLConspiracy1158d ago (Edited 1158d ago )

Trolling? I was genuinely concerned and have been since. I wasn't rude about it. Just because a division is doing well doesn't mean the company as a whole won't have to shift money around from different divisions. In fact their software division could be affected since they are more hardware oriented.

Gamer19821158d ago

TV is killing them as they charge silly prices for there TVs in which they used to dominate but now companys like SAMSUNG and LG are just as good when it comes to TV technology and quality but a lot cheaper..

King_many_layers1158d ago

Samsung and LG have yet to reach the quality of Sony's top 2012 models. This is a unanimous statement shared majoratively through tech websites and such.

People simply buy into marketing which Sony cannot compete with.

DigitalHope1158d ago

As someone who works in big box retail selling home theater, I can tell you Sony is poised for a comeback in TVs in 2014.

The quality has always been top notch but the value has never been there as Sony TVs always cost way to much. Now they are more competitively priced and since early may when the 2014 line ups came in Sony has been top seller so far. Followec by LG then Samsung.

Things are changing slowly.

Arkardo1158d ago

That is a fact, Sony TV'S are way more quality than Samsung and LG, costs are the problem here, but as others said people buy marketing and cheap prices not quality.

rdgneoz31158d ago

"Samsung and LG have yet to reach the quality of Sony's top 2012 models."

Sony's TVs are better quality, but some people would rather spend a little less. Hell, you could use the money you'd save from getting a Sony TV and use it towards a larger LG / Samsung TV.

DigitalHope1158d ago

@rdgneoz3

Thats not true anymore. This year Sony TVs are lower cost than comparing models in Samsung. LGs still have a lower cost and better panels than Samsung this year. Really have not liked samsung TVs in 2014. Just their curved TVs.

Baccra171158d ago

I forget the guys name, but there is an american investor that wishes for Sony to break apart and sell certain assets away, like movies. I wonder if this apology is because that guy is trying to rally everyone again and force Sony to sell off pieces of itself again.

Kribwalker1158d ago (Edited 1158d ago )

The company as a whole is only worth $17 billion dollars now. Down from over $120 billion. This kind of loss is no longer sustainable

"While investors aren’t calling for Hirai’s job yet, they do want the turnaround to show traction after the company cut its earnings three times last year. Sony is now worth about $17 billion, compared with a market valuation of about $120 billion in 1999."

Giul_Xainx1158d ago

I lost interest in big screen tvs 2 years ago after I bought a beautiful monitor that has In Panel Switching between my computer's input, and my ps3's HDMI input.

I know most console gamers are couch potatoes, but my desktop setup is much better.

Pogmathoin1158d ago

Markets are affected by any kind of negativity news. Hirai is simply trying to allay those fears, but being honest by telling everyone that the waters will be choppy before it calms. Nothing new in any business. Sacrifices were made, and because of other external forces in the world markets, it has taken longer than projected to correct the ship.

fr0sty1158d ago

Sony has taken a beating in the TV market, which is why Kaz chose to spin off the TV business. A wise move I say, as TVs are not anywhere near as profitable of a market as they used to be and there are other name brands that have gained dominance in the market. This sort of restructure isn't done overnight, though investors are chomping at the bit to see results right now.

Is it a crisis for Sony? Most definitely. Is it the end of Sony? Only if they keep the businesses that are bleeding red ink. If they drop their losing interests and stick to the ones making money, they'll be fine.

Microsoft, while not in as dire a position, is also involved in a lot of markets that are draining its blood. The Xbox division has only lost billions, and as a division has never once turned a dime of profit. This is why investors, Bill Gates, and the current CEO have all stated they are open to spinning off Xbox. Microsoft also keeps failing in the mobile market.

Both companies have fat to trim as far as investors go, but only one of them is dealing with investors telling them to make their gaming division part of that fat to trim off.

Buff10441158d ago

PS4 is doing great, no doubt, but it's still bad news for shareholders. Business is business. I think some of the PS4 fans on this website don't understand this.

FanboyKilla1158d ago

@kribwalker. That cant be true. By your calculations it will be bye bye sony in a matter of years. Or at least sony as we know it.

Sabo1158d ago

Sony's restructuring will help them back to profit after these next waves of losses from TV and PC, which they took care of.

As a gamer I am just so happy to see them doing great with the PlayStation!

kenshiro1001158d ago

You know how some people are bicfitness. Don't even bother.

iamnsuperman1158d ago

I feel Sony need to relook at how they do the TV space. The problem is most people rather have value for money and buy low to mid range TVs since the common man can't really tell except for size. Sony should look into mid range TVs

1158d ago
saber000051158d ago

Didn't they already sell their TV division?

Sabo1158d ago

^
They did a spin off for the TV business and completely sold the PC biz..

guitarded771158d ago

Yes, SONY TV's are expensive compared to the competition, but SONY's vision has been to lead through innovation in technology. This has a cost.

What should SONY do? Should they create an affordable line of TV's with less features? Maybe. But they have to do something to keep the TV line going. If it wasn't for SONY in the TV making business, we'd see far less innovation. SONY is a leader there.

I have SONY, Samsung, Toshiba and LG TV's in my home. Honestly, the SONYs have the best, most natural picture, but I don't think they are worth more then the Samsung. SONY really needs to get into that middle market.

tokugawa1158d ago

lol @ frosty desperately needed to inject some microsoft doom and gloom into the comments as well.

i can imagine you moping your brow and taking some deep breathes as well lol

there are some truly pathetic people on here

http://www.forbes.com/compa...

http://www.forbes.com/compa...

that should cheer you up a bit lol

thorstein1158d ago

Yes. I think the TV business needs to take a lesson from the other parts of SONY. I want a SONY TV, but the Samsung is cheaper.

Yes, I want a cheaper SONY TV.

fenome1158d ago (Edited 1158d ago )

It's defintely their TV market, their prices have been way too high. Just last year their 4K TVs were like $25,000, now they're in the $2,500+ range and they keep emailing me 'deals' for like $1,100 off (on the $3,000+ models anyways).

They've also started releasing cheaper models of LEDs that are more affordable, hell you can get a 40" Sony LED at Walmart right now for $350. Walmart never even used to carry Sony TVs because the price-range was too high, so you can tell that they're working on it.

http://www.walmart.com/sear...

Amputating their computer department should help a lot too, it was just bleeding them out.

+ Show (23) more repliesLast reply 1158d ago
king_ps41158d ago ShowReplies(2)
ThroatPunch1158d ago

As much as you troll IGN, I disregard your fake concern.

DLConspiracy1158d ago (Edited 1158d ago )

You consider anyone who sheds a positive light on the xb1 as trolling though. I like both consoles and I have said it hundreds of times. Doesn't change the fact I still use Sony's software to create music.

truefan11158d ago

Sounds like the CEO is banking on China to help sell ps4's. According to the n4g analyst, consoles won't sell in China. Maybe that was just when it looked like XB1 will the the only console in China for the foreseeable future. China is defintely an interesting dynamic.

LeCreuset1158d ago (Edited 1158d ago )

I wouldn't bank on China. Fortuantely, FROM THE ARTICLE, it looks like PS4 doesn't need to:

"There are some positives for Hirai as Sony extends its lead in video games and the film unit rebounds.

"The PS4 beat Microsoft Corp. (MSFT)’s Xbox One in U.S. console sales in May, extending its lead for a fifth month, according to Port Washington, New York-based NPD Group Inc. Sony last month took steps toward selling consoles in China, agreeing to form two ventures after the government lifted a 2000 ban on sales of the machines.

“'One senses that Sony is building a solid momentum and a viable ecosystem” around the console, said Amir Anvarzadeh, manager of Japanese equity sales in Singapore at BGC Partners Inc. “Sony is doing many, many things right, not to mention its decision to ignore Mr. Loeb.'”

For all of your implications of N4G pro-Sony bias and hypocrisy it is interesting that when I questioned the mods on why this story about MS http://n4g.com/news/1455378... was failed for the reason "Seriously quit beating a dead horse this belongs on tech spy not n4g," I was told, "The issue is they talk about xbox once but the pieces are over all surface, and other product not about the xbox." Funny, as anyone can click on the failed story and see that its focus was on what recent investor pressure meant for the Xbox division, unlike this story, which has lured you in, which only mentions PS4 briefly.

fr0sty1158d ago

Yeah, the console maker that is moving more consoles and selling more games than any other manufacturer on the planet is banking on China to move more consoles.

Your idiocy blows me away sometimes...

kenshiro1001158d ago

What the heck are you talking about? The PS4 has been selling very well. What does the sales of the PS4 have to do with the article?

XiSasukeUchiha1158d ago

Apologies accepted Sony now come so I can give you guys a hug!