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Sony CEO Kazuo Hirai  (Source: abcnews.go.com)
The company said a weak global economy and exchange rate moves are the cause

Sony is in hot water -- that's nothing we haven't heard before. The electronics company has been struggling with areas like its TV sector for a while now, and these troubles are reflected in the most recent financial earnings report.

Sony posted operating profit of $6.28 billion yen ($80 million), a significant 77 percent decrease compared to one year earlier. Analysts only predicted a 36 percent profit drop.
Sony had a 94 billion yen operating loss and $24.64 billion yen net loss for the quarter ended June 30.

Also, Sony slashed its previous financial predictions for the year until March 2013. It cut its operating profit forecasts from 180 billion yen to 130 billion yen, and also reduced its TV shipment predictions from 17.5 million to 15.5 million as well as its handheld device sales from 16 million to 12 million.

One glimmer of light, however, is that PlayStation sales are remaining at the previous prediction of 16 million sales.

So what's Sony's beef? The company said a weak global economy and exchange rate moves. Also, a lot of it has to do with the company's TV unit. Last December, Sony decided to shake up its TV division by negotiating a buyout of its 50 percent manufacturing stake with Samsung in the LCD joint venture. It also split its TV division into three units consisting of sales of LCD TVs, outsourcing manufacturing to cheaper foreign facilities and developing future TVs.

But help may come in the form of the new CEO, Kazuo Hirai, who was appointed to the position in February 2012. He vowed to take over the struggling TV unit himself, and made other management changes to help bring the company back to life.

In April 2012, Hirai came up with an entirely new game plan for making Sony profitable, which included design changes to gadgets like TVs, a reduction of certain models, and expanded game titles and subscription services.

Despite Hirai's best efforts, the company had to cut 6 percent of its global workforce in April in order to save some cash. Later, in May, Sony reported a record $5.7 billion USD annual loss.

Source: Reuters



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Crazy Ideas
By Gunbuster on 8/2/2012 3:34:05 PM , Rating: 0
Focus on making mainstream products and make them smaller with the best build quality possible (TV, Phone, laptop, tablet) I remember when Sony made all metal cassette tape walkmen not much larger than a tape case.

Dump all proprietary standards.

Stop making stupid shit like the Aibo, Rolly, and Vita.




RE: Crazy Ideas
By Taft12 on 8/2/2012 3:46:10 PM , Rating: 2
quote:
I remember when Sony made all metal cassette tape walkmen not much larger than a tape case.


That was around the same time the product quality of their consumer electronics peaked. They've been coasting on the name recognition for over 20 years now with substandard quality. It's taken a long time, but it is FINALLY catching up to them.


RE: Crazy Ideas
By Adam M on 8/2/2012 7:20:59 PM , Rating: 3
I wouldn't call the Vita a crazy idea. It is actually a very solid piece of hardware and given console integration along the lines of the Wii U or Microsoft SmartGlass the Vita could offer some great game play. Sony failed the Vita with a tremendous lack of video games, especially those titles that made the PSP a hit like Monster Hunter. Sony's insistence on yet another proprietary memory format was another huge blow to the Vita. Having to buy an over priced memory card because the device didn't come with its own was a slap in the face. It won't save Sony as a whole, but I still might buy a Vita if I can get more then one good game for it.


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