It’s no big secret that Sony isn’t doing quite as well as it should when it comes to money. It’s PlayStation 4 is the current console darling and is riding a huge wave of momentum, but the same can’t be said for the PlayStation Vita, or indeed just about any of Sony’s other business. They’ve sold off their VAIO PC division, TV sales are stagnant and the company is losing a bunch of cash. As is the Japanese tradition, it’s executives – including Kaz Hirai - will now be taking a huge pay cut.
According to The Wall Street Journal, Sony’s big wigs are set to slice their remuneration in half following the company’s fourth straight annual loss. they will also lose any options for bonuses. Overall, the company’s looking at a $1.27 Billion dollar loss for the financial year ending March 31, 2014
Kaz Hirai is set to outline Sony’s future and announce his and other executive’s huge pay cuts on May 22, where he’s likely to focus on the company’s current pillars of strength; games, imaging technology and mobile devices.
Hirai, former Playstation boss, became CEO of Sony in 2012 with a goal of restructuring the company as “One Sony.” Unfortunately hat’s taking a little longer than planned – with the company even looking at splitting off its TV division s a wholly owned, but separate entity.Two Sonys…I guess.
Earlier this year, Nintendo’s executives took a similar pay cut following that Japanese giant’s 3 successive years of losses – which is always nicer than just firing all the staff that actually make games.
Last Updated: May 13, 2014
Umar Returns
May 13, 2014 at 10:36
I have to say though, that Sony did a brilliant job with the PS4. In all honesty the system has nothing appealing about it in the way of games really, but they wooed the fuck out of gamers. And they kept their word and are continuing to uphold the standard they set out for themselves…Hope things look up for them
Admiral Chief in Space
May 13, 2014 at 10:43
HALF
http://3.bp.blogspot.com/-e1uOxoCm6tQ/UojE7Bz2HOI/AAAAAAAAA_k/gbTDymMi7f0/s1600/Eddie_Half.jpg
Admiral Chief in Space
May 13, 2014 at 10:44
If you don’t know what I’m talking about here, have a look here:
(sorry about really crap quality, looking for better version…)
Hammersteyn
May 13, 2014 at 10:43
Hopefully this means less retrenchment
Pieter Kruger
May 13, 2014 at 10:44
Breaking News: Sony to sell off PS division to Apple……LOL!
Rincethis
May 13, 2014 at 10:45
Was wondering when you would get here. Been so silent recently…
Hammersteyn
May 13, 2014 at 11:07
Eye problems, Can’t read so much. He has to squint a lot.
http://cdn.arwrath.com/1/195615.gif
Rincethis
May 13, 2014 at 10:45
isn’t this the second time they are taking cuts?
FoxOneZA
May 13, 2014 at 10:57
So many cuts, enough to turn one into an emo.
Rincethis
May 13, 2014 at 10:59
lol
Jaded_Reprobate
May 13, 2014 at 10:55
Hats?
FoxOneZA
May 13, 2014 at 10:56
Would you like tinfoil ones?
FoxOneZA
May 13, 2014 at 10:56
This is what happens when you can’t cut staff and sell off assets anymore. Eventually the plug at the top will have to give way and new guy will come in to regain investor confidence. Sony have also thrown in the towel on OLED TV’s so that’s like raising a white flag to Samsung and LG after years of slugging it out for supremacy. The word Bravia sounded better than it sold, better than it looked.
ps4lol
May 13, 2014 at 11:12
Sony is selling or splitting off their lossy businesses (Vaio, TVs) and focusing on their profitable divisions. This means they’ll soon cut their losses and start turning a profit. You should be worried if Sony WASN’T cutting those losing divisions, but they’re making the right business decisions. They won’t ever be an empire again but they aren’t going under.
The gaming division and first party studios are well funded and making a profit. During the quarter ending 31st December 2013 the Game business made a profit of $172m off the back of an impressive 64.6 per cent rise in sales year on year. Sony is in for a year or two of losses and restructuring, then provided their profitable divisions stay profitable, they’ll be on solid ground.
Sony is still worth 18.5 billion. They just aren’t bringing in enough revenue or profits to bring that number up, and for a time, and probably for a few quarters here or there for the next few years, they might lose money. They also obviously have working capital, because they have games in development right now, and are able to market their newest system and do what they have to do to sell their products. If Sony were on the brink of bankruptcy, we wouldn’t be seeing AAA game announcements with budgets ranging from $50-100 million dollars. If they were on the brink of bankruptcy, they wouldn’t be buying Gaikai, or investing in new tech such as Morpheus or the PS4. PS4 will make a net profit, and Sony won’t go bankrupt.
Sony Game, Financial Services, Devices, Music, Mobile Products & Communications, and Pictures are all profitable divisions. They aren’t going anywhere, sorry.
Sony’s market cap is 18.65 billion as of today (2014).
Market cap in 2013 was 17.6 billion it has gone up since then.
Sony is ranked #80 in world as the most valuable brand 2013.
Sony is ranked #506 in the global 2000
#87 in Sales
#171 in Assets
#547 in Market value
78.52 billion dollars in sales in 2013