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Sony CEO Kaz Hirai: PS4 'likely' to exceed PS2 profits
While Sony as a whole is predicting losses to the tune of almost half a billion this fiscal year, company CEO Kazuo Hirai is looking to the future - specifically, the PlayStation 4's future. During a corporate strategy meeting reported by Japanese website Impress Watch and translated by Eurogamer, Hirai said he believes that "it is likely that PS4 will become the platform which exceeds the profits earned with PS2." The PlayStation 2 sold more than 155 million units in its 13-year lifespan, having finally been discontinued at the beginning of last year. The PS4, in its six months on the market, has sold more than 7 million units. While that trend would need to remain relatively stable to beat the PS2 in sheer numbers within the same span of time, bear in mind that a straight-up comparison of unit sales isn't looking at the whole picture. Hirai cited the growing popularity of digital distribution and services - things which didn't factor into the PS2's success - as the keys that will allow Sony increased profitability, even if they don't move as many units. [Image: Sony]
Sony's PlayStation 4 is already profitable and on course to beat the PS2's success
If Sony is to reverse its heavy losses, big-selling products like the PlayStation 4 need to turn a profit. The good news is that the company's newest console is already fulfilling that requirement, having already recouped Sony's investment in the hardware, and it now looks set to beat profits achieved by the internationally legendary PS2. Speaking at a corporate strategy meeting, Sony president Kaz Hirai said the PS4 was "already contributing profit on a hardware unit basis, establishing a very different business framework from that of previous platform businesses." There's no doubt over which console Hirai is referring to here: the PS3 took three years to shed its loss-leading status, after cancelling out gains made from Sony's "biggest gaming success," the PlayStation 2.
Kaz Hirai's CES keynote liveblog
2013 was a big year for Sony, with 4K TVs and the hotly anticipated PlayStation 4, among many other products, keeping the company in the news. So, as CES 2014 kicks off, who better to set the tone than CEO Kaz Hirai? We're here at the Venetian hotel bright and early to share his presentation with you. Stay tuned! January 7, 2014 8:30:00 AM PST
Sony CEO Hirai: Xperia Z coming to a US carrier shortly
Sony CEO Kaz Hirai had some good news to deliver on stage at D11 -- for US fans, at least. According to him, the Xperia Z, which currently serves as the company's flagship smartphone, is expected to arrive on a US carrier shortly. Unfortunately that's the extent of the details Kaz was willing to offer up, as we expect he wants to give the unnamed operator the opportunity to make the announcement itself. With that said, we have our suspicions that T-Mobile may be involved, thanks to its recent appearance in the FCC with T-Mobile radios. He did, however, mention that this success story is in part thanks to the company's increased marketing efforts in this part of the globe. We'll keep you updated with the news as it trickles out. Update: David Beren from TmoNews grabbed a few shots of the Xperia Z with T-Mo branding, which certainly adds credence to our suspicions that the Z will wind up with the UnCarrier.
Sony report details what Kaz Hirai has achieved in his first year as CEO
In recent years, Sony's state of the union report has made for wince-inducing reading, but one year into Kaz Hirai's "One Sony" strategy we seem to be seeing hints of a turnaround. The company is trumpeting its return to profitability after several loss-making quarters, thanks to boosts in its film and financial services units -- not to mention some aggressive asset sales. Unfortunately, Sony still has the weak heart of its consumer electronics business to nurse, but promises that aggressive cost-cutting in its TV department will see it back in the black shortly. Sony has also announced plans to "significantly expand" its business model around the PlayStation 4 and promises to speed up smartphone development to incorporate the company's hardware and imaging know-how. With one eye on those dwindling PC market figures, Sony will look to make profitable machines rather than chasing market share. The company has also said that, aside from its successful Mirrorless ILC division, will shift focus on its imaging business from consumer electronics to medical and security. With all of this change, let's just hope that no-one forgets to buy someone in the PR department a wider camera lens.
Hirai: Vita sales on 'low end' of expectations
The last couple of years have been interesting for handheld game consoles. The 3DS debuted to lower than expected sales in 2011, only to see Nintendo turn things around with a drastic price cut. Last year, the PlayStation Vita failed to match even the 3DS' pre-price-drop performance in its early months, and the device still has yet to see any price cuts. Sony CEO Kaz Hirai now says that the Vita has been "on the low end of what we expected."The comment comes from a media reception interview following a CES stage presentation, reports the Wall Street Journal. Still, even with lagging sales, Hirai said the Vita could still be a success, noting that Sony judges the relative success of a product over 5 to 10 years. Said Hirai, "Long term is what is important." Certainly, it took the PlayStation 3 quite some time to build up steam, and now the console is neck and neck with Xbox 360, which had a yearlong head start. Of course, it's worth mentioning that it took the PS3 a few price drops to get there.
Sony restructuring in Japan: camera lens plant to close with loss of 2,000 jobs
Kaz Hirai's "One Sony" rescue plan was designed to unite the many disparate arms of the conglomerate, shed 10,000 jobs and make cost savings wherever it could. Facilities in Sweden and the UK have already been closed, so now the company is shifting focus to its operations in Japan. Sony will close its Minokamo site, which currently produces camera lenses for DSLRs and smartphones, with production being moved to factories in Kohida and Kisarazu, 840 staff will lose their jobs. The company is also instituting an early retirement program across its various Japanese businesses in order to push the domestic total to 2,000 -- which it must do before a self-imposed deadline of March 2013.
Sony makes Olympus rescue pact official with $645 million investment
After months of speculation about who would step in to save the scandal-ridden Olympus' rocky fortunes, Sony has finally opened up its checkbook. The two companies are entering into a "business and capital alliance," with Sony pumping in $650 million to its former rival. In exchange, it's gaining a seat on the company's board and a 51 percent stake in a new joint venture based on Olympus's coveted medical imaging tech -- something Kaz Hirai outlined in his "One Sony" strategy. The deal also includes a component-sharing agreement in the photography space, with Olympus mirror cells and camera lenses being given to Sony, while image sensors (where Sony is very strong) will go the other way.
Sony CEO says Vita meeting targets, but 'trending behind' in some regions
Sony CEO and president Kaz Hirai says the PlayStation Vita is performing near expectations overall, but that it's "maybe trending behind in certain territories." Earlier this month, Sony revealed the Vita hit 2.2 million sales worldwide. Hirai, speaking to Reuters at Berlin's IFA conference, declined to reveal which territories he referred to.His statement follows news earlier this year of Sony cutting 10,000 jobs, that following a projection for the company's biggest ever yearly loss: $6.4 billion. While the Vita's sales may compare harshly to those of the 3DS, Sony's games division apparently isn't the root of the company's problems.
Sony Mobile moving HQ to Tokyo, cutting 1,000 jobs in Sweden
Sony's slow and painful transformation continues with a restructuring of its newly-minted mobile division. In October, it's moving its headquarters from Lund, Sweden (presumably a holdover from its Ericsson days) to Tokyo -- for deeper integration -- and repurposing the duties of its facilities in Tokyo, Lund and Beijing. As part of the changes, Sony Mobile will slash 15 percent of its workforce, with 1,000 employees being let go by the end of March 2014, in a trend we've seen across the industry. Most of those affected are in Sweden, with 650 on-site staffers and up to 450 consultants being shown the door.
Kaz Hirai given commemorative PS3
There's only one way to get this extremely limited-edition PlayStation 3 system, and that's to be Kaz Hirai. SCE Worldwide Studios president Shuhei Yoshida tweeted this scene of semi-outgoing Sony Computer Entertainment chairman Kaz Hirai being presented with the unique-looking commemorative item.This might be the very last photograph of Kaz Hirai holding up a PS3. What will we do now, as a community?
Kaz Hirai drops some titles at Sony, still president
One morning, Sony president and CEO Kaz Hirai woke up and said, "I probably have too many titles." Beyond being the president and CEO of Sony Corporation (the umbrella parent company of PlayStation, Bravia, and many other Sony brands), Hirai is also "representative director" and "chairman" – until today, that is. Hirai is relinquishing his responsibilities and titles for both his positions as representative director and chairman of Sony Corp.Hirai is dropping both titles and responsibility in today's move, only remaining on Sony's board in a "part-time capacity." He became president and CEO earlier this year, taking over former CEO Howard Stringer's spot in early February. Sony Computer Entertainment president Andrew House is taking over the vacated chairman position, effective this month, and former Sony Corp. head Howard Stringer is also exiting his board seat.In case the bizarre-looking hierarchy isn't clear enough, this means that Andrew House – the guy who runs the PlayStation brand – is the head of Sony Corp.'s board, followed by eight Japan-based Sony Corp. employees. One of those is his boss, Kaz Hirai. Yup.
Understanding Sony's lessened focus on 3D at this year's E3
During last year's Sony E3 press conference, the company spent quite a bit of time talking 3D. Several titles were on the horizon with 3D support, including main entries in series like Uncharted and Killzone. Since then, the company toned down its approach to 3D integration.Sony Senior VP of Product Development and Worldwide Studios Scott Rohde doesn't see the change as so stark. "It's just not necessarily the focus and newsworthy. Last year it was," he told Joystiq during an interview this week. Due to an internal initiative within Sony last year, 3D became a main talking point of its E3 showing – that's simply no longer the case, Rohde said. "A couple years back, even three years ago, because PlayStation is a big pillar in the overall Sony structure, Sony and Kaz [Hirai] came to us and said, 'Hey, we know that you guys can make a big impact by showing a lot of things on 3D.' So we're sort of the fire starter, if you will," Rohde said.Now that the fire's been started, however, it doesn't look like PlayStation has to keep it going. Beyond God of War: Ascension, Sports Champions 2, and LittleBigPlanet Karting, no other 3D titles have been announced for the PlayStation 3. Rohde chalks that up to Sony's internal development studios having autonomy, despite company-wide initiatives last year. "If it's going to enhance an experience, then absolutely. But if it's not core to the experience, then it's not gonna be a focus," he said.But if that's the case, and internal studios aren't embracing 3D on their own, it stands to reason that 3D wasn't the success story Sony hoped for. As you might imagine, Rohde doesn't agree. "I don't look at it that way, because it enhances some games better than it does others," he said. Rohde compared it to 3D in film. "I'll show up and I'll watch some in 3D or some not. Honestly, for me, it almost depends on when movie times are. If it's a convenient movie time, I'll go see the 3D one, right? But it's kind of the same thing – the same thing is kind of occurring with games as well."
1.8 million Vitas getting covered in fingerprints worldwide
Sony has sold 1.8 million PlayStation Vitas, according to CEO Kaz Hirai. The executive announced the latest tally during the company's fiscal earnings call. Gamasutra reports Hirai thinks this is a "good start," but he did say, "We have to reinforce the software area in order to improve the business, that is the basic line."Hirai added, "This is a very important product indeed for us, and therefore we still have a very high motivation to develop this further. There is no change."The latest update we had on Vita sales came in late February, where the company stated the portable gaming device had sold 1.2 million units.
Sony's final 2011 report shows a record net loss, optimism for 2012
After a slew of bad news and drastically restated projections, Sony has reported the numbers for its full 2011 financial year and as expected, they're not good. The company experienced a record net loss of 456.7 billion yen ($5.73 billion) and an operating loss of 67.3 billion yen. The good news to look forward to however, is that it currently expects an operating profit of 180 billion yen for next year. For the year, it also noted sales of 13.9 million units for the PlayStation 3, 6.8 million PSPs/PS Vitas, 19.6 million LCD TVs and 21 million cameras. Next year, Sony is looking to move 16 million PS3s and 33 million smartphones. New CEO Kaz Hirai has detailed the "One Sony" strategy he hopes will bring the company back to financial health but with its current worth standing at just a fraction of competitors like Samsung and Apple (Reuters pegs it at 10 percent and 3 percent, respectively), the electronics giant has a long, long way to go. Hit the source link below for more dirty financial details, slideshows and spreadsheets.
Sony expects biggest loss ever, 10K laid off; games a pillar for future
Sony announced today it would cut 10,000 jobs, approximately 6 percent of its global workforce, as it projects a loss of $6.4 billion for the fiscal year that ended in March. It will be the fourth straight year of losses for the company, which really needs to turn around its money pit TV business over the next two years."Sony will change. I've fully dedicated myself to changing Sony," said new CEO and President Kazuo Hirai to press today, as reported by USA Today.Part of Hirai's turnaround efforts will be a fiscal pilates regimen, focused on strengthening the core businesses of mobile, digital imaging and gaming. The plan is for these groups to generate 70 percent of total sales for the company and 85 percent of income for the entire electronics business.On the games front, the company plans to increase sales through PSN subscriptions and downloadable content, along with expanding the PlayStation Suite lineup and its compatible devices. For all of Sony's problems, the games division seems to be the least of its worries.
Kaz Hirai reveals 'One Sony' turnaround strategy, will cut 10,000 jobs
Freshly minted Sony CEO Kaz Hirai has revealed his plan to turn around Sony's fortunes and as rumored, it includes significant cuts. Two days ago, the company revised its projections for the 2011 fiscal year to reflect a $6.4 billion loss. The One Sony plan includes reducing headcount by 10,000 in the 2012 financial year, a number that also reflects jobs leaving Sony as businesses are sold or otherwise reorganized, and will cost it 75 billion yen ($926 million) during 2012. Currently, the plan is to focus on digital imaging, gaming and mobile for growth, until those three make up 70 percent of its total sales in 2014. As far as its beleaguered HDTV business, it's going forward with the plans announced during CES to streamline the product line, reduce its costs, and return to profitability by 2014. Looking forward, there's slightly fuzzier promises to "develop and commercialize" OLED and Crystal LED technology. Beyond those the idea is to expand in emerging markets, as well as medical and 4K related technologies. There's more details in the press release after the break and presentation slides linked below, we'll let you know if there's any more information revealed on a conference call later on today.
Sony revises projections, sees $6.4 billion net loss for 2011
While we wait to hear Kaz Hirai's new plan for Sony, the news is getting worse before it gets better. The company just announced new projections that are more than double the net loss it predicted in February for the fiscal year 2011, to the tune of $6.4 billion. The reason? According to Reuters, it's additional tax expenses that are causing the pain, as Sony says it's "due to the establishment of valuation allowances against certain deferred tax assets, predominantly in the U.S." There is a silver lining to this cloud however, as the company is projecting an operational profit of 180 billion yen ($2.2 billion US) in 2012, compared to a loss of 95 billion yen ($1.16 billion US) last year. There are already predictions that Kaz will announce significant cuts in jobs and bonuses on the 12th, and from the numbers in the PDF linked below you can see why.
Sony to cut 10,000 jobs and slash bonuses, says Japanese newspaper
There have been some major adjustments at Sony HQ already, but Japanese business sheet Nikkei reckons they're nothing compared to what's on the horizon. It reports that, come an announcement on April 12th, Kaz Hirai will reveal plans to clear out 10,000 jobs by the end of this year -- that's six percent of his workforce. The paper also says that seven execs, including chairman Howard Stringer, could be asked to forgo their bonuses, as the company concedes a $3.2 billion loss for 2011. It's a just a single report and it's entirely possible that none of this will happen, but merely the hint of such austerity could perhaps serve Hirai's interests, even if he ends up being less drastic when Thursday comes around.
Sony gets a Kaz-style kick to its corporate guts, emphasizes its oneness
Kazuo Hirai doesn't officially grab the reins as Sony's CEO and President until April 1st, but in reality he's already at the stirrups. He's making a number of exec-level switches that he hopes will deliver "rapid and optimized decision-making processes as 'One Sony'." His strategy? An inner circle consisting of himself and fellow reformers -- such as CFO Masaru Kato -- who will engage with department heads and, you know, make 'em do stuff faster. Digital imaging, gaming and mobile will be considered pillars of the electronics business and receive more "concentrated" resources as a result. Meanwhile, Kaz will directly oversee the struggling TV business in an effort to turn it around, which means his days of enjoying life and staring out of windows are probably numbered. See the press release for more tectonic detail.
