Reporting disappointing second-quarter earnings a few weeks back, Sony warned that the Christmas shopping period would likely be a weak one. “We are quite cautious in foreseeing end-of-year sales,” Sony CFO Nobuyuki Oneda said at the time.
“[If the price were any lower] I’d lose money on every PlayStation I make.” So said Sony CEO Sir Howard Stringer last month. And while that remark might seem to preclude a price cut on the PlayStation 3, a price cut might be exactly what we get come tomorrow.
About the best thing to be said for Sony’s grotesque financial results is that they came in smaller than expected. The company’s 98.9 billion yen ($1 billion) loss for the fiscal year ended March–its first net loss in 14 years–wasn’t nearly as bad as the 150.0 billion yen ($1.57 billion) figure it had predicted in January or even close to the 173.8 billion yen ($1.8 billion) analysts polled by Thomson Reuters had been forecasting.
Now that Sony’s old guard has taken what was once a strong electronics and gaming brand and run it into the ground, the company’s new guard is circling back to resurrect it. This morning the company announced a management overhaul that will see CEO Howard Stringer succeed Ryoji Chubachi as president and assume responsibility for Sony’s key electronics division.
What a dark day this is for Sony. Its hand forced by a profound deterioration in the current business environment, the company today slashed its forecast for the current financial year and said it will soon post an annual loss for the first time in 14 years. And that loss will be far worse than even the most pessimistic forecasts–$1.65 billion.
“What has become of the Sony known for its technology?” Japanese Economy, Trade and Industry Minister and former Sony employee Akira Amari asked in October of 2006. “I hope it will solve its problems soon to quickly recover its brand image reputed for technological prowess.” If Amari can recall when that was Sony’s image, he has a good memory. Because Sony lost its dominant position in consumer electronics to rivals in Japan, South Korea and the U.S. long ago and has yet to regain it. And nowhere is that more apparent than in the the company’s videogame division.
This year’s D conference had its share of great lines–tired ones, too (we’re all clear on the subject of Facebook and information sharing, right?). Here’s a selection of the former…
I will probably never be a CEO again.”
–Yahoo CEO Jerry Yang states the obvious
It’s a company that creates technology.
– Facebook CEO Mark Zuckerberg answers the question, “What is a technology company?”
In June 2005, Sony chairman Howard Stringer told the company’s annual meeting that he was a “Sony warrior,” vowing to fix the faltering Japanese electronics-and-entertainment giant. “I am a foreigner,” he said. “I was born in Wales and I live in the U.S. … But first and foremost I am a Sony warrior.”
John Paczkowski has been poking fun at the tech industry and the personalities that drive it since 1997. From 1999 to 2007, he wrote the award-winning tech news Web log Good Morning Silicon Valley for the San Jose Mercury News, Silicon Valley's daily newspaper. Read more »
Here is a statement of my ethics and coverage policies. It is more than most of you want to know, but, in the age of suspicion of the media, I am laying it all out.
While the technology behind the Telephone is new, the design is reassuringly old-fashioned, reminiscent of a phrenologist’s horn or ear-candle in form. We found the experience far more comfortable than the one we had with the Telegraph.
12:58 AM: Breakfast: Two schools of fish from Tokyo Bay. Calories: 782,000. How I was feeling when I ate this: confused, irradiated, hating my size.
11:37 AM: Exercise: “Taxi Stomp” (alternating legs, for 30 blocks). Calories burned: 148,900,183.
1983. The Beatles announce their first tour in thirteen years, but likewise announce that Michael Jackson will be going on tour with them as a one gigantic mega-concert event.
Best video mashup ever.
A Facebook Memorial
Wow.
Worth it for the Rickrolling photo alone.
Excellent.
Flughumor!
… you vacuous, toffee-nosed, malodorous perverts
D is unlike any other executive conference. Since its debut in 2003, D has brought to life the energy and excitement of the digital revolution in an unscripted, upfront and unparalleled way. Read more »
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