It seems that Sony is in a quite bad position. The company has to deal another annual loss, the fourth one in five years. Therefore, its chief executive, Kazuo Hirai, and other executives will forgo their bonuses.
There is an increasing number of consumers who preferred other brands, such as Apple Inc. and Samsung Electronics Co. The general worry is that instead of trying to find an innovative product that might change the situation, Hirai is actually more preoccupied with personal loss.
In order to change this situation, Mr. Hirai will reveal the company’s strategy of overcoming these hard times during a press conference that has been scheduled on the date of May 22. He saves all the information for this date, and therefore he didn’t give any further details, excepting the fact that Sony will focus on games, imaging technology, and mobile devices. He also mentioned that at Sony they don’t see failure as something definitive, but rather a motivator of trying even harder in order to succeed. However, the company refused to make any conmen concerning its earnings.
The good news for the company is the fact that the new PlayStation 4 is doing well, beating its main competitor, Xbox One. Besides this, it also promises a high definition music player and 4K television sets, which provide improved picture quality. There are also smaller and somehow less important gadgets, such as the motion sensors that can be attached to the tennis rackets. However, the company can’t win anything with such gadgets that are used by a relatively small target audience.
Even if Sony is trying to overcome its current situation, it seems rather difficult, especially because there are many products that aren’t from the growth areas, just like the case of the 4K television sets, which are somewhere below 10% of global TV sales.
Even if it has been predicted a profit of around ¥30 billion, at the end of the fiscal year it actually had a total loss of ¥130 billion. Even if PS4 has been sold in many exemplars, it has lost its popularity, and right now it doesn’t bring the profits it used to bring a while ago. Right now the executives have promised the investors that they will handle the restructuration of the company. Therefore, they have planned to sell the PC business, and besides this, they have also decided to separate the TV business from the main company, creating in this way a separate unit.
Regarding the smartphones, which seem to be of high interest to this producer, it seems that in 2012, when Hirai became CEO, Sony managed to be on the third place, right after Samsung from South Korea and Apple from USA. His partnership with Ericcson from Sweden helped Sony to raise its profit at 4.3%. However, last year it started to fall again, reaching back 3.8%, being on the sixth place.
Right now everyone is waiting to see Sony’s next more that might save it.