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CEO blames "Old Sony" and crisis for profit collapse

Howard Stringer says there is "too much old Sony at Sony" despite the fact that he has been in charge since June 2005.

Sony CEO Howard Stringer yesterday blamed the latest awful profit outlook for Japan's favourite electronics company on not adapting fast enough to new conditions, as well as the "worst recession in (his) lifetime". At a press conference, Stringer announced that Sony was revising its fiscal 2008 (ending March 2009) consolidated net income forecast to a ¥150 billion ($1.6 billion) loss from an earlier estimate of a ¥150 billion profit, off expected revenues of ¥7.7 trillion ($86 billion).

"There is too much old Sony at Sony," said Stringer in his introductory comments, despite the fact that he took the helm almost four years ago – specifically to make a "new Sony".

Stringer finds it easy to articulate the right strategy: Sony must become more of a pure design and marketing company (like arch rival Apple) in a world where hardware is becoming increasingly commoditised. It must also urgently reduce its huge fixed cost base, as reflected by the gulf between its revenue and its earnings. (To rub salt in the wound, Apple on Thursday beat analysts' expectations with a $1.6 billion profit for its fiscal first quarter to end-December, off sales of $10.2 billion.)

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financeasia.com
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Nathan Drake3251d ago

Hire Kutaragi back,it was him that understood the importance of powerful software along with powerful hardware.

Maddens Raiders3251d ago

bunker working on very impressive titles for CELLIUS.

Maddens Raiders3251d ago

stays TRUE to the gamers like old Sony did, then we've got your back Sir Stringer.

RememberThe3573251d ago

He is not doing what he was supposed to do.

Kick him to the side and hire Kutaragi back.

At least the "Old Sony" made money...

shine13963251d ago

you do know why he left don't you?

Darkseider3251d ago

That Sir Stringer does an Apple and helps commoditize the PS3 and future Playstation product lines and supply them with excellent services and software. That would be a BEAUTIFUL thing.

Could you imagine an iPod like response to the PSP2? >shudders<

OR

Tight Macintosh like integration with the PS3/4/5, etc... and Sony's Camcorders, Cameras, Cell Phones and TVs.

Again, here's hoping.

NobleRed3251d ago (Edited 3251d ago )

Ken Kutaragi has landed a position at Kadokawa Group Holdings (KGH) as part of the company's board of directors. The KGH group includes over 50 companies that focus on media and publishing industries. Famitsu publisher Enterbian is also part of the KGH group. KGH chairman, Tsukuhiko Kadokawa, said that the firm is hoping to "tap into Kutaragi's international business sense."

That is his job he's not at Bandai. BTW Stringer sucks, How can some one talk such bullshit about his own company? He only fired employers that was everything. He hasn't done anything good for Sony. I still don't get it why he get the boss of Sony.

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