Sony in transition: a new CEO takes control amidst mounting losses
Kazuo Hirai is set to take control of the once mighty Sony in April. His first order of business is the unenviable task of turning around a company that hasn't posted a profit in four years under the weight of a strong yen and a poor performing television business. Outgoing CEO Howard Stringer claims that Sony would have been profitable had it not been for a series of unfortunate natural disasters in 2011 that sees the company forecasting a $2.9 billion loss for the year.
Sony mulls investor proposal to sell off movie, TV, and music units
With Sony under increasing pressure to get out of the entertainment business and get back to making great gadgets, company managers have begun to evaluate whether to sell off part of the unit that oversees movies, TV and music, according to a report today from Nikkei, a Japan-based newspaper.
The move follows comments made last week by Daniel Loeb, the US billionaire investor who owns $1.1 billion worth of Sony's stock, equal to about six percent of the company's outstanding shares. He said...
Sony makes first net profit in five years despite falling demand for core products
Sony is back in the black after posting its first full-year net profit in five years. The company made a net profit of ¥43 billion ($458 million) in the 2012 financial year — an increase on its forecast of ¥40 billion ($404 million) — following a loss of ¥457 billion ($5.7 billion) in 2011. Operating profit was ¥230.1 billion ($2.45 billion), up from a ¥67.3 billion ($820 million) loss last year.
Sony Mobile CEO targets profitability in 2013 fiscal year, expects over 34 million units sold
Kaz Hirai's vision for turning Sony around — a plan called "One Sony" — revolved around strengthening the company's three core businesses: digital imaging, gaming, and mobile. Hirai first announced that plan a year ago, and now the company is making some promises. Kunimasa Suzuki, CEO of Sony Mobile, told reporters that it plans to sell over 34 million smartphones and tablets in the fiscal year beginning April 1st, according to Bloomberg. With the boost in sales, the unit expects to be...
Sony agrees to sell US headquarters for $1.1 billion
Sony will sell its US headquarters building to investors for $1.1 billion, according to Bloomberg. The sale is expected to generate net cash of around $770 million for Sony, which is working to cut losses across the board. The company will continue occupying the 37-story building at 550 Madison Avenue for up to three years, leasing from new owners the Chetrit Group, which also co-owns Willis Tower in Chicago. The building was previously owned by AT&T, which sold it to Sony in 2002 for $236...
Sony CEO Kaz Hirai: 'We need to be a more focused company'
I just had a chance to sit down with Sony president and CEO Kaz Hirai for an enlightening chat about the electronics-maker's past, present, and future. Topics up for discussion include the company's new line of 4K televisions (including that new prototype OLED model), the Xperia line of Android phones and potential expansion to other platforms, and what the road ahead looks like for Sony. Kaz offers a glimpse into the mind of the Japanese monolith, with a surprisingly candid take on the rough...
Sony's stock hits 32-year low on convertible bond sale as it tries to grow imaging business
Sony is turning to the open market to raise money for a new expansion, the company announced yesterday. The plan is to raise 150 billion yen (about $1.9 billion) by selling 5-year convertible bonds, its first such sale since 2003, reports Bloomberg. Of the cash, 60 billion will be used to invest in CMOS image sensor production (separate from its investment in June), another 60 billion will repay debts from its Gaikai and Olympus share acquisitions, and 30 billion will repay other bonds that...
Sony slims losses despite declining sales
Sony announced its second-quarter financial results today, and things are beginning to turn around following last year’s $5.7 billion loss and a disappointing first quarter. While the company lost $198 million on $20.5 billion in revenue, it was a significant improvement over both last quarter's $312 million loss and a $350 million loss at the time last year. But the improvement comes despite lackluster sales in many of Sony's biggest businesses and troubles in China that cost the company...
Sony to lay off more than 2,800 employees in Japan as restructuring continues
When Kaz Hirai announced his "One Sony" strategy to get the company back on its feet, the new CEO explained that the initiative would include a workforce reduction of up to 10,000 employees by the end of its 2012 fiscal year. Since that announcement, Sony has slowly released details on exactly where those cuts will be made — roughly 1,000 jobs were cut as Sony Mobile moves its headquarters back from Sweden to Tokyo, and now the company has just announced information on a further 2,840...
Sony closing Optiarc optical drive division after losing price war
Sony is reportedly planning to close Sony Optiarc, a wholly-owned subsidiary responsible for the production of optical disc drives. Optiarc, originally a joint venture with NEC before Sony bought the company out in 2008, will cease operations by March 2013, according to Japanese newspapers The Asahi Shimbun and The Japan Times. Despite a robust 15-percent marketshare, Optiarc has been running at a loss due to "fierce competition" from overseas driving the price of optical drives down to...
Sony Mobile moving headquarters to Japan, cutting a thousand jobs
Sony Mobile, the entity that resulted from Sony's buyout of Ericsson from the famed Sony Ericsson partnership, is starting to make the operational changes it hopes will help it become a more profitable operation. The first step is to move its headquarters from Lund, Sweden, back home to Tokyo, Japan, which will be happening this October, and the second, more painful one, will be to "reduce global headcount" by some 15 percent, equivalent to roughly 1,000 jobs.
Sony may be describing this...
Kazuo Hirai: getting to know Sony's CEO
What kind of guy is Sony’s new CEO Kazuo Hirai, really? Four months since his appointment, Hirai sits down with Businessweek to talk about how things have been going, his plans to turn the company around, and the devices he uses in his own life, including a Sony flip phone.
On the company's troubled TV business, the CEO notes how dissolving its joint ventures with Samsung and Sharp gives Sony the freedom to shop around for the best prices on panels. He also mentions that the company is...
Sony loses $312 million in Q1 2012 amid high restructuring costs
Sony has announced its financial results for the first quarter of its fiscal year, and as expected for a company in transition they don't make for pleasant reading — it managed to lose $312 million off sales of $19.2 billion. Sony actually increased its sales year-on-year by 1.4 percent, attributed to the consolidation of Sony Mobile, but $143 million in restructuring costs caused operating income to slide from $270 million to $79 million. Together with the high yen and unstable situation...
Sony boosts imaging division with $997 million investment in CMOS sensor production
With Sony's traditional businesses such as TV making heavy losses, new CEO Kaz Hirai has said that the company will prioritize stronger areas such as digital imaging in order to return to profitability. We're seeing the first fruits of that promise today, as Sony has announced plans to invest ¥80 billion (about $997 million) in its CMOS sensors. The move will increase production capacity of the new "stacked" sensors at the company's Nagasaki plant to around 60,000 wafers a month.
The stacked...
Sony reports net loss of $3.2 billion for Q4 2011, annual loss of $5.7 billion
Sony announced its consolidated financial results for its fiscal year today, reporting a record annual loss of 457 billion yen ($5.7 billion). The company's final quarter of the year saw it report a loss of 255 billion yen ($3.2 billion), a fifth straight quarterly net loss. Sony had previously estimated it would record a $6.4 billion loss for the 2011 financial year, based on a large tax charge (about $3.6b) that the company had to pay in the US.
Sony cites "unfavourable" foreign exchange...
Sony putting IPTV plans on hold because of Comcast bandwidth caps
The last we heard of Sony's rumored IPTV ambitions was a fairly non-commital "never say never," but now an executive has shed some light on what's been taking the company so long. Sony Network Entertainment VP and GM Michael Aragon told the Variety Entertainment & Technology Summit that Comcast's policy of capping bandwidth is putting the company off making a move:
Sony announces Nasne, a TV tuner and media box to bring the company's ecosystem together
Sony has announced Nasne, a digital media box with built-in satellite and terrestrial TV tuners that will connect to several of the company's products. Many of the features are taken from the similarly-named Torne, a PlayStation 3 TV tuner accessory that uses the console's hard drive to record TV broadcasts. Nasne has a 500GB hard drive of its own, however, and will extend deeper into the Sony ecosystem by letting Sony Tablet and Xperia phone users access recorded content when on the same...
HD & Home
Sony will reduce TV portfolio by 40 percent in 2012, look to commercialize OLED and Crystal LED TVs
How do you fix a problem like Sony's chronically ailing TV business? New company CEO Kaz Hirai reckons the answer lies in streamlining the number of products offered, by a full 40 percent during the fiscal 2012, and focusing on the development and introduction of new high-end displays such as OLED and Crystal LED. We loved our first sighting of Sony's Crystal LED prototype at CES in January this year, so Kaz's vision definitely strikes the right note with us. Additionally, the company's...
Sony to reduce workforce by 10,000 as part of 'One Sony' initiative
The rumors appear to have been true. As part of its "One Sony" restructuring under new CEO Kazuo Hirai, Sony has announced it will be cutting approximately 10,000 jobs over the 2012 fiscal year. In a PR release, the company stated the the move will hit its headquarters, subsidiaries, and sales organizations "in order to further enhance operational efficiencies." The number also covers employees that are expected to be transfered out of the Sony organization due to subsidiary business...
HD & Home
One Sony: Kaz Hirai presents his strategy for recovery
In the past months Sony has been confronted with everything from a foundering TV business to a massive tax charge that together have pushed its expected loss for financial year 2011 to a record $6.4 billion. Today, Sony has gathered the press at its head office in Minato ward, Tokyo, so that new CEO Kazuo Hirai can explain how he plans to turn the newly reorganized "One Sony" around.
Hirai wants everyone to know he takes the recently-announced loss very seriously. The key to recovery, he...
Sony doubles estimate for 2011 loss to record $6.4 billion
Sony has just announced that it'll report a record $6.4 billion loss for the 2011 financial year. It's a bad number however you look at it, though more than half of the overall figure is made up of a tax charge (about $3.6b) that Sony has had to take in the US. That charge, together with Sony's already expected $2.9 billion loss from operations, has resulted in today's grisly revision to the company's estimated annual accounts.
Mobile
Sony cutting 10,000 jobs, might request return of executive bonuses, says Nikkei
The Japanese Nikkei business daily is reporting that Sony is planning to cut its global workforce by 10,000 workers, or about 6 percent of its entire workforce by as early as the end of 2012. About 5,000 workers will be cut due to the restructuring of Sony's chemical and small and medium LCD businesses, in addition to another 5,000 domestic and international cuts. The move is meant to improve operational efficiency, while accelerating the company's shift toward mobile devices.
The cuts are in...
Sony CEO Kaz Hirai to host meeting on April 12th, 'One Sony' strategy likely focus
Sony boss Kaz Hirai has already unveiled a four-point plan to turn the electronic giant around, and it looks like he still has a few more announcements about the direction of the company. Hirai, who officially became President and CEO on April 1st, will be speaking at a corporate strategy meeting taking place on April 12th — though no real details were given about what exactly he'll be discussing. When he first took the job Hirai said that Sony will need to focus on strengths like digital...
Mobile
Kuni Suzuki named Sony Mobile's new President and CEO
Sony's Kunimasa Suzuki, the newly-appointed board member and President of the company's UX and Product Strategy Group, has been named the new President and CEO of Sony Mobile Communications. Back when the company completed its acquisition of Sony Ericsson in February, Bert Nordberg stayed on as President and CEO of the renamed company. Under the company's new "One Sony" reorganization, however, Suzuki was named to "oversee the mobile business," and now he has the title to go with it.
The...
Is Sony rolling out its promised 'unilateral' pricing strategy?
Last month, we reported that Sony was planning to roll out a "unilateral" pricing strategy in the US on April 1st. This would essentially put an absolute minimum on what its retail partners could charge for Sony products, and its starting to look like this new strategy is rolling out as promised. Some posters on AVS Forum noticed that the price of Sony's 65-inch Bravia X929 HDTV jumped over $1000 overnight on Amazon.com, and a look at price-tracking site Camelcamelcamel.com confirms this jump....
HD & Home
Sony's US content business names Michael Lynton as CEO and Nicole Seligman as president
The rumors were true: as Sony's next CEO Kaz Hirai takes the reins of cameras, gaming and mobile devices under a new "One Sony" structure, the company's consolidating power over its US movies and music businesses in the hands of current Sony Pictures chairman and CEO Michael Lynton. He'll be the new CEO of Sony Corporation of America, which oversees all of the company's entertainment content publishing efforts, and he'll be joined by a new president, Nicole Seligman, who's getting promoted...
HD & Home
Sony entering commercial OLED TV partnership with AU Optronics?
Sony has been quiet on the OLED TV front since withdrawing its 11-inch XEL-1 from the market a couple of years ago, and while Samsung and LG showed off 55-inch OLED sets at CES this year Sony only brought its Crystal LED prototype. However, the company has always said that it was continuing development of OLED technology, and if reports coming out of Korea are to be believed its re-entry into the market may not be far off. ET News cites sources with information that Sony has sent engineers to...
Sony abandons further investment in Sharp LCD collaboration
Sony has announced that it will make no further investment in Sharp Display Products Corporation (SDP), its joint LCD production venture with Sharp, following yesterday's news that Foxconn would be taking a 46.5 percent stake. The two companies have further amended their agreement to give Sony the right to sell its seven percent stake in SDP to Sharp in the event of a third party (such as Foxconn) entering in the partnership. A decision on what Sony will do with its stake is expected by...
Sony reorganizes into 'One Sony', prioritizes digital imaging, gaming, and mobile
Sony is unveiling a new business structure today, dubbed "One Sony," which it hopes will speed up and streamline its decision making process. Under the new plan, the separate professional and consumer product and service groups will disappear, which is probably what gave rise to the aspirational name. The top-tier reorganization is effective beginning April 1st, and sees the company place digital imaging, gaming, and mobile devices as the three cornerstones of its electronics business.
In...
Sony Ericsson rises from the grave for tennis tournament next week
There's no longer any such thing as Sony Ericsson — it's all just Sony now — but try telling that to the estimated 300,000+ attendees of the Sony Ericsson Open tennis tournament. Starting Monday, ESPN2, the Tennis Channel and CBS will all be broadcasting "73.5 thrilling hours of domestic coverage" from an event with a zombie sponsor, whose banners and defunct logos will no doubt feature in almost every shot. Quite possibly the best part? While Sony Ericsson originally signed the event for...
Photography & Video
Sony tries to pivot back to premium, begins 'unilateral' pricing on consumer electronics
Today at a small gathering of journalists, Sony Electronics President and COO Phil Molyneux shared plans for the company's new retail strategy, and it's a new but familiar direction for the company.
Starting April 1st, the consumer electronics-maker will begin "unilateral" pricing in the US, which will limit the absolute minimum a retailer can charge for one of its products, and will keep that pricing consistent across stores and states. The pricing will be at parity in big box retailers as...
Mobile
Sony completes Ericsson buyout, Sony Mobile Communications is born
With regulators signing off, we knew it was just a matter of time before Sony's buyout of mobile partner Ericsson was complete, and it looks like today's the day. Sony has announced that it has finished its acquisition of Telefonaktiebolaget LM Ericsson's 50-percent stake in Sony Ericsson, a move that came at a cost of €1.05 billion ($1.47 billion). While Sony has already begun rebranding Sony Ericsson products under its own name, the company also announced that it would be renaming its...
Mobile
Sony exploring Vita OS smartphones and tablets, says AV Watch
Sony’s soon-to-be President and CEO, Kazuo Hirai, has hinted that the company is investigating porting the Vita OS to other mobile devices like smartphones and tablets. Japanese site AV Watch reported on Friday that Hirai told reporters at a Q&A session that the company doesn’t want us to forget Vita OS as a mobile (i.e. not just gaming) platform. The report goes on to quote SCE’s Senior Vice President Yoshio Matsumoto as saying, "if you’re asking if we’ve made it in a way that’s...
WSJ: Sony's Kazuo Hirai gets tough, says there's 'no sacred area' in company
WSJ is reporting that Sony's incoming CEO, Kazuo Hirai, says he will consider leaving businesses, reducing the company's workforce, and making other "hard decisions" if necessary. It's the latest tough-talk from Sony's new chief, in the midst of the company's latest economic woes: Hirai was appointed CEO in response to mounting corporate losses, and just yesterday, Standard & Poor's downgraded Sony's long-term credit rating due to a middling TV division and concerns over competition. Hirai...
Sony downgraded by S&P due to loss-making TV division and 'severe' competition
Kaz Hirai's biggest challenge in his upcoming promotion to CEO of Sony will undoubtedly be to revitalize the company's once-glorious TV division. Having suffered a debt rating downgrade by Moody's three weeks ago, Sony is today getting another negative outlook, this time from Standard and Poor's. The creditworthiness assessors over at S&P believe that Sony's long-term earnings will continue to be hampered by the significant losses generated by its TV-producing arm and have lowered its...
Kaz Hirai details his plan to save Sony
After Sony's disappointing third-quarter financial report today, soon-to-be President and CEO Kazuo Hirai took the stage to discuss his plans for saving the troubled company. His four-point plan consists of building on Sony's core competencies, getting its TV house in order, figuring out where it can cut costs, and speeding up innovation.
- Re-enforcing Sony's core businesses: Hirai recognized that digital imaging and gaming are Sony's strong suits, and stated that he plans for the company to...
Sony posts $2 billion net loss for Q3 FY2011 results, forecasts $2.9 billion loss for full year
Sony has just posted its results for the third quarter of its 2011 fiscal year and as expected, the news is not great. Sony posted an operating loss of $1.2 billion and net loss of $2 billion on revenue of $23.37 billion. Sony placed part of the blame on "the impact of the floods in Thailand, deterioration in market conditions in developed countries, and unfavorable foreign exchange rates," but also pointed out that its decision to sell its stake in a joint LCD venture to Samsung and some...
Sony's new CEO, Kazuo Hirai, plans to cut costs, shake up the company, says WSJ
The Wall Street Journal has published a profile of the next Sony President and CEO, Kazuo Hirai, in the hours before Sony is to announce its latest quarterly results. While Hirai's history as the man who turned around the PlayStation division is well-known, his plans for shaking up Sony are still a bit of a mystery. Cost cutting is definitely on the table, but Hirai may lay out details of a more ambitious corporate shakeup during the earnings call. He intends to move Sony beyond focusing on...
HD & Home
Sony promotes Kazuo Hirai to President and CEO effective April 1st, Stringer to be Chairman of the Board
Sony has officially named Kazuo Hirai as President and CEO, replacing Howard Stringer in both roles. The move to the role of company president was reported last month, but Sony has now confirmed that Hirai will be taking on CEO responsibilities as well, effective from April. Stringer will become chairman of the board in June, remaining executive chairman until then.
Hirai, 51, is currently the president of Sony Computer Entertainment. He is largely credited with turning around Sony's video...
EU approves Sony buyout of Ericsson
The European Union has officially approved Sony's buyout of Ericsson for ownership of the Sony Ericsson joint venture. The deal, which was announced in late October, will give Sony control of the company's phone development, and — perhaps more importantly — full rights to the company's patent portfolio. Despite the wait for approval, Sony has already started rebranding products, with the Xperia S and Xperia Ion bearing only the Sony name. Given that Sony Ericsson posted a €247 million...
HD & Home
Sony still working on OLED display tech, developing Crystal LED 'in parallel'
LG and Samsung are showing off crazy next-gen OLED TV prototypes here at CES, but Sony went another way with its Crystal LED prototype — it's extremely impressive, with nearly 90-degree viewing angles, but it's also prompted a lot of rumors that Sony's abandoning OLED TVs for the consumer market. We asked for clarification and it seems the truth is a little different: Sony says that Crystal LED will be developed in "parallel" to OLED for future consumer and professional applications. We...
Mobile
Sony Ericsson's rebrand to Sony starts today
With the announcements of the Xperia S and Xperia Ion, Sony's buyout of Ericsson from their decade-old mobile joint venture enters a new phase: these are the first phones to be announced with Sony branding alone. The Japanese giant is quick to note that the deal isn't technically closed just yet — it's still "subject to customary closing conditions including regulatory approvals" — but with two phones now announced featuring the Sony-only branding, confidence must be very high.
Perhaps...
HD & Home
Kazuo Hirai to be named President of Sony, Howard Stringer to remain CEO
According to a report in Nikkei, Sony will soon name Kazuo Hirai as President. Howard Stringer will remain in place as CEO and Chairman, but Hirai will be taking over presidential duties as early as April. Hirai is currently Executive Deputy President, and rose through the ranks after heading Sony's PlayStation division in North America. His success with the games unit is in contrast to Sony's plummeting fortunes in the television market, and the promotion follows a forecasted $1.2 billion...
HD & Home
Samsung buys Sony's stake in LCD joint venture for $939 million
Sony and Samsung have ended their LCD joint venture established in 2004. The split comes after rumors of the dissolution were first reported in October and follows Sony's November announcement of a $1.2 billion annual loss due to weak demand from its loss-leading television division coupled with a strong yen. Samsung will acquire all of Sony's 50 percent share for 1.08 trillion won (about $938.97 million) and convert the joint venture into a wholly-owned subsidiary. In addition to monetizing...
Sony forecasts $1.2 billion loss for the year
As expected, Sony just announced dismal earnings for the quarter and projected year. The company expects to post a ¥90 billion ($1.2 billion) net loss for the financial year on the heels of an unexpected quarterly loss of ¥27 billion. It had expected ¥60 billion in net income for the year. Sony blames the strong yen and flooding in Thailand for its recent woes in addition to sluggish television sales in the US and Europe.
Sony cut its annual sales forecast for televisions by nine percent,...
Sony reshuffles TV division as market upheaval continues
Sony today announced that it's going to reorganize its ailing TV division into three groups, focused on LCD television, outsourcing, and next-generation products, respectively. The move comes one day after insistent rumors that Sony will disband its LCD manufacturing deal with Samsung, and just one day before Sony announces its quarterly earnings, which are expected to once again be bleak. The timing has fueled further whispers that a more dramatic move is in the works, especially in the wake...
Sony taking full control of Sony Ericsson in €1.05b deal
A deal rumored to be in the works in recent months, Sony has now confirmed that it's buying partner Ericsson out of their Sony Ericsson joint venture -- a move that comes just over ten years since the company started operating on October 1st, 2001. The deal means that the phone business will fall under Sony's direct control, but it also means that Sony will be receiving "ownership of five essential patent families" and cross-licensing deals on a broader scale; considering how hot the patent...
Sony, it's time to act like Sony again
Let's face it, Sony, you aren't doing much right. You can't keep the PlayStation Network online, which just happens to be your primary gaming and content delivery service. Your multitude of business units still seem to be at odds with one another. You're playing catch up or second fiddle in almost all of your major markets: computers, mobile devices, TVs, video games. What's most troubling is that your best ideas never seem to hit the market soon enough, or with enough polish, to actually...
