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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 CEO Kaz Hirai to reveal new strategy on April 12th
If you want to pick up some tips before appearing on The Apprentice, or perhaps you're just want to know how Sony plans to wriggle back from a predicted $2.7 billion loss this fiscal year (its fourth concurrent in the red) then cancel all your plans for April 12th. Sony Corp will be holding a briefing on that date to share its rescue strategy plan with the shareholders, and the world. In attendance, of course, will be the newly minted CEO Kazuo Hirai, who'll no doubt be taking the opportunity to assert his position for the first time. Details of the call are in the source, just resist the temptation to scream "You're Fired."
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.
How would you change Sony's Vaio F?
Let's say you bought Sony's VAIO F Series laptop at the end of last year. Would it be a stretch to say you liked how cheap it was and that games played well as long as you dialed down those display settings? Were you not too impressed by the battery life or that touch button on the trackpad? Well, at least you agree with our review of the "desktop replacement" device. But we'd like to know more, dear friends: what gremlins have you uncovered in the numerous hours logged using this unit? What are the nice surprises? If Kaz Hirai was reading this intently waiting for your opinion, what would you tell him you'd like to change?
HTC phones getting PlayStation Suite certification in 2012?
Anonymous sources have told Pocket-lint that Sony will be allowing rival smartphone maker HTC to have PlayStation Certification for its devices. An official announcement is expected at MWC at the end of the month, with devices able to play PSOne games and access to the Android-flavor of the Sony Entertainment Network. Former SCE Chairman (now company president) Kaz Hirai introduced the program open to non-Sony devices at AsiaD last year, possibly to the raised eyebrows of those in the company's revamped mobile division.
Sony's Q3 earnings are in: wider than expected full year loss, lowered sales projections
Sony already revealed Kazuo Hirai will take over for Howard Stringer as CEO and President April 1st last night, and with the big shocker out of the way it's time for the fiscal Q3 reports. After posting a net loss of $346 million last quarter, Sony is now expecting a bigger loss for 2011 than it had previously estimated, as well as lower sales. It's currently showing a net loss for the quarter of 159 billion yen ($2~ billion), or a $1.2 billion operating loss. Blame is put on a larger than expected effect from the flooding in Thailand, strong yen and weakness in cellphones. Sales for the quarter were about $23 billion, down 17.4 percent from the same quarter last year. The consumer products and services division (HDTVs, PS3s, etc.) in particular caught a brick, with an operating loss of over a billion dollars on sales that dropped 24 percent from last year. It recorded a loss on its sale of shares in the S-LCD venture with Samsung, LCD TVs sold for prices lower than its cost reductions, and the PlayStation 3 had the killer combo of higher marketing costs and lower unit sales. Check the PDF and slides linked below for more bad news. We'll let you know what we hear on the earnings call in a few, but until then, Kaz, may we suggest bringing in Jimmy Rollins for tips on breaking out of a slump?
Sony confirms Kazuo Hirai as new President and CEO, replacing Howard Stringer
Sony has just confirmed Kazuo Hirai as its new CEO and President, validating rumors that have been swirling for a few weeks now. Outgoing CEO Howard Stringer, meanwhile, has been appointed Chairman of Sony's Board of Directors. The Hirai era officially begins April 1st, while Stringer will assume his new role sometime in June (until then, he'll remain executive chairman). Today's announcement, coming a day before Sony's earnings call, brings an end to more than a year's worth of speculation, though Hirai's selection hardly comes as a surprise, considering his recent string of promotions. In April, he was named Executive Deputy President; five months later, he was promoted to Sony Computer Entertainment Chairman. According to Stringer, in fact, Sony has been grooming Hirai since as early as 2009, when the Board began designing its succession plans. Kaz, he says, stood out from the crowd: Kaz is a globally focused executive for whom technology and the cloud are familiar territory, content is highly valued, and digital transformation is second nature. I believe his tough-mindedness and leadership skills will be of great benefit to the company and its customers in the months and years ahead. I look forward to helping Kaz in every way I can so that succession leads inevitably to success. It was my honor to recommend him to the Board for the positions of President and CEO, because he is ready to lead, and the time to make this change is now. Kaz, for his part, acknowledges that Sony is going through some "challenging" times at this juncture, but credits Stringer with steadying the ship, and seems clear-minded about the future. "The path we must take is clear: to drive the growth of our core electronics businesses - primarily digital imaging, smart mobile and game; to turn around the television business; and to accelerate the innovation that enables us to create new business domains," the 51-year-old PSN architect explained. "The foundations are now firmly in place for the new management team and me to fully leverage Sony's diverse electronics product portfolio, in conjunction with our rich entertainment assets and growing array of networked services, to engage with our customers around the world in new and exciting ways." Click past the break for Sony's full press release.
Sony's Kaz Hirai: no PlayStation 4 at E3
It looks like you can officially put any hopes of a PlayStation 4 announcement at E3 to rest. In a roundtable with reporters at CES, Sony's Kaz Hirai responded to a question about recent comments attributed to gaming division head Andrew House by stating that "Andy is absolutely right in that we are not making any announcements at E3." As The Wall Street Journal reports, Hirai further added that he's "always said a 10-year life cycle for PS3, and there is no reason to go away from that." That ten-year life cycle would place the PS3's end-of-life around 2016, but as with the PS2 and PS3, we'd expect some overlap between the PS3 and its eventual successor.
Sony's Kaz Hirai to step up as president as early as April (updated)
Nikkei is reporting that Sony will be promoting current Executive Deputy President Kazuo "Kaz" Hirai to president as soon as April, while Howard Stringer is expected to remain chairman and CEO of the company. As you may recall, Sony started its search for a new president as far back as November 2010, and with Kaz's two promotions last year (to Executive Deputy President in April and to Sony Computer Entertainment Chairman in September), it isn't surprising that he's the chosen one to pick up some of Sir Howard's work. It'll be a while before we see the consequences of this promotion, and anything can happen between now and the board meeting as early as next month to seal the deal; but here's hoping that under Kaz, Sony will go easy on all these new memory card formats while it further unifies its various groups within the corporation. Update: Bloomberg has received a brief statement from Sony clarifying that the board has not yet made a decision on this promotion, which isn't really a denial of the plan considering the final board meeting has yet to take place.
Kaz Hirai: Sony is 'in discussions with non-Sony companies' over PlayStation Suite
Wondering whether Sony's PlayStation Suite will ever really leave its nest? While the SDK won't be out until next month, SCE Chairman Kaz Hirai just told us here at AsiaD that this Android-friendly framework's still open to all other manufacturers, and he emphasized that it "isn't an ecosystem where we want to keep everything within the Sony family" while pimping the three PlayStation Certified Android devices so far: Xperia Play, Tablet S and Tablet P. Kaz also confirmed that Sony's currently "in discussions with non-Sony companies to bring them onboard," but as to when this will come to fruition, the company will make those announcements "when it's time to go public with it," so we shall see.
Sony's Kazuo Hirai: liveblog from AsiaD!
We're back! AsiaD's concluding today, but we've got a couple of big hitters left on the schedule. Kicking things off this morning -- yeah, it's morning, we're in the future -- is Sony's Executive Deputy President, Kazuo Hirai, and we're guessing he'll be shooting it straight regarding the PS Vita, those nasty "outages" and whatever else he feels like keeping us abreast on. Join us after the break for the blow-by-blow!
Live from Sony IFA 2011 press event
What better way to kick this year's IFA conference in beautiful Berlin, Germany than a good old fashioned Sony press conference? We're getting ready to get things started here, so sit down, grab a beverage and reach for those 3D glasses to read along at home [note: this liveblog is not in 3D]. Photos by Zach Honig.
Kaz Hirai to become Sony Computer Entertainment Chairman, leave Andrew House with tough CEO gig
When you've had to deal out as many public apologies as Sony has had to perform over its protracted PSN hacking saga, the typical expectation is that someone somewhere will be getting fired or "reshuffled" into a new post. No firings at PlayStation headquarters, however our old pal Kaz Hirai is getting a new position as Sony Computer Entertainment Chairman, with Andrew House succeeding him in the CEO hot seat. Mr. House was previously Sony's PlayStation chief in Europe, so he's simply stepping up to be responsible for the company's global operations, but Kaz's new duties are less clearly defined. Both changes will go into effect on September 1st, a day after current Chairman Akira Sato retires, giving both Kaz and Andrew a little time to get accustomed to their new(ish) surroundings before tackling Sony's massively important PS Vita launch at the tail end of the year.
Sony misses promised PlayStation Network and Qriocity restoration date, begs for more patience
Whoops. If you'll recall, Sony held what can only be described as an emergency press event in Japan a week ago in order to issue a number of assurances about the resumption of service as it relates to the PlayStation Network and Qriocity. Seven days later, things are still as dead as they were pre-Cinco de Mayo. This evening, the company's Senior Director of Corporate Communications Patrick Seybold punched out a quick update to let the world know that they could actually leave the house and find something else to entertain 'em -- like it or not, PSN isn't coming back online today. The reason? On May 1st, Sony was apparently "unaware of the extent of the attack on Sony Online Entertainment servers," and now, it's spinning its wheels in order to restore security on the network and "ensure" that user data is safe. Mr. Seybold seems to understand that you're overly anxious about getting back into the swing of things, and he's even going so far as to ask your trust that Sony's doing "everything [it] can" to get the lights blinking once more. Oh, and if you were planning on visiting that source link just to find the new ETA... don't. Sony's planning to update you "as soon as it can." [Thanks, Alex]
Sony responds to Congress: all 77 million PSN accounts compromised, finger pointed at Anonymous
We've heard Sony explain itself at length regarding the gigantic PlayStation Network breach, but this might be the most useful version of the story yet -- it's the one that Sony's Kaz Hirai is forwarding to US Congress members concerned about your personal information. The official PlayStation.Blog has the full English document up on Flickr for your perusal, and we'll warn you it's much the same tale -- Sony says all 77 million PSN and Qriocity accounts have had information stolen, but the company's still not sure exactly which pieces have gone missing, whether credit card numbers are compromised or not, or who could be behind the hack. Sony does say, however, that it had 12.3 million credit card numbers on file, and 5.6 million of them from the US, and that investigators found a file on one of the servers named "Anonymous" with the words "We are Legion" inside it. Hard to draw many conclusions from that. Update: Anonymous has apparently responded saying it "has never been known to have engaged in credit card theft."
Sony promises 'phased restoration' of PlayStation Network and Qriocity starting this week
Sony made quite a few promises this morning about how it intends to deal with the fallout from the PlayStation Network outage and breach when it wasn't profusely and solemnly apologizing -- you can find our liveblog right here -- including improved security measures and a few token handouts of 30-day free subscriptions to PlayStation Plus and Qriocity and possibly some free software. Perhaps more importantly for you gamers, Kaz Hirai told reporters that services will resume "soon," and by the end of the week we should see some functionality return. Of course, it made those promises in Japanese, but if you want an English copy you won't have to look far, as the official PlayStation.Blog got hold of a press release with them all spelled out. Find the full document after the break.
Sony's Kaz Hirai addresses PlayStation Network hack, we're liveblogging
Sony's PlayStation Network has been down for over a week, and it's a royal mess for all involved -- as you've no doubt heard, an external intrusion by unknown hackers compromised the personal information (supposedly including everything but credit card numbers) of potentially millions of users. This morning, Sony VP Kaz Hirai (formerly of the PlayStation division) will address the world from the company's headquarters in Japan, and our friends at Engadget Japanese are on the scene to bring us first-hand details in just a few minutes. Additionally, there appears to be an official livestream that will begin at 1AM ET, so keep it locked right here and potentially find some video at our source link. Update: We're hearing that Sony's "goodwill gesture" may not be an incredibly significant one -- affected users can expect a free 30-day subscription to PlayStation Plus and a free software download of some sort, while Qriocity customers will get an extra 30 days of service on the house. Update 2: As many as 10 million credit card numbers may have been exposed, though Sony says it has no proof that any actually have been compromised, and claims that it's received no reports of credit card fraud thus far. It is, however, working with the FBI to investigate the hack. 2:00 JST: The show's begun -- following a little bit of Mozart, Sony has trotted out three solemn-looking executives. More updates after the break.
Sony's Kaz Hirai consolidates power as likely CEO successor to Howard Stringer
Sony's in the midst of yet another realignment this morning. Most notable is the promotion of Kazuo "Kaz" Hirai to Representative Corporate Executive Officer and Executive Deputy President, effective as of April 1st. The change in title also carries new responsibilities for Sony's Consumer Products & Services Group putting Kaz in charge of all of Sony's consumer electronics businesses including TV, audio / video, imaging, PC, gaming, and mobile in addition to overseeing Sony's global sales and marketing, common software platforms, and design operations. The move makes Kaz the number one candidate to replace Howard Stringer, the 69 year old boss from Wales, who is expected to step down in 2013.
