PS3 News: Sony Reveals $2.9 Billion Loss, Unveils Restructuring Plans - PS3 News

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Sony Reveals $2.9 Billion Loss, Unveils Restructuring Plans

According to Reuters and GamesIndustry.biz, Sony has warned that they will post a $2.9 billion annual operating loss, and has taken the first necessary revamping steps that analysts and stockholders have been been clamoring for.

In order to combat the slower economy and the company's first operating loss in 14 years, Sony plans to "beef up" a restructuring plan outlined earlier in January, and this more than doubles a cost-cutting target for the year to March 2010. While the company plans to "keep investing aggressively in strategic fields" (like auto-use batteries, for example), they will also curb investment, close five to six plants and cut a total of 16,000 regular and contract jobs to save 100 billion yen. They will end TV production and design at one plant in Japan, and are forced to reduce the headcount by 30% in operations related to TV design worldwide. As of right now, turning around the LCD TV operations, which is only losing money, is high on Sir Howard Stringer's priority list. Said Stringer:

"We simply have no alternative but to dramatically change the fundamental ways we view our business as well as the way we create, manufacture and distribute our products."

Sony expects these restructuring changes will yield a total of 170 billion yen through March 2010, although some analysts are pressing for more changes. As for the games division, Sony will post an increased loss of $337 million, although there's no report on the exact cause of the loss. Most are simply attributing it to slower-than-anticipated hardware and software sales, which Stringer has already said must be maintained and boosted. Evidently, he continues to battle the old guard at Sony, but for now, the restructuring plans are somewhat in place and will hit TV production hardest.

1/22/2009 Ben Dutka

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Comments (50 posts)

King James
Thursday, January 22, 2009 @ 11:34:08 AM
Reply

A 3 billion dollar loss!!!!

Is samsung killing it like that?! I guess that does make sense. The lower end samsungs and panasonics are way better than the lower end Sony's. Its in their DNA.

Maybe they can try to focus on their PCs. Sony PC's are great but they are also expensive. If they can develop a lower end version to attack the lower income people, they would dominate the market just off of the included software they have.

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PS3_Wizard
Thursday, January 22, 2009 @ 11:46:02 AM

I never heard of a Sony computer.

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King James
Thursday, January 22, 2009 @ 11:56:25 AM

What??!!! U gotta be joking. Sony VAIOs! U been living under a rock, man? They make some of the most innovative desktops and laptops on the market.

-Desktops w/ coolant systems (instead of fans).
-They were making UMPCs before they were cool.
-Their notebook PCs has the best displays money can buy.
-And u know these pcs got that Blu-Ray!

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Scarecrow
Thursday, January 22, 2009 @ 1:06:43 PM

SONY VAIOs are great :3

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somethingrandom
Thursday, January 22, 2009 @ 8:52:20 PM

@King James
Sony stopped making VAIO desktops some time ago. However, they do still sell laptops.

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PS3_Wizard
Wednesday, January 28, 2009 @ 2:24:36 PM

Yeah that right...I've been living under a rock because I haven't heard of a Sony computer.

So I take it you have to know EVERY brand of EVERY product in order to be cool these days? King james, Go screw yourself punk...

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kidgrid
Thursday, January 22, 2009 @ 11:43:43 AM
Reply

Sony makes the best tv's out there but you have to pay for it. all my friends own vizio becuase of the price to value. my hope is they become more competitive on the low end. they already revolutionized the hd video, now is the time to do it to low end tv.

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coverton341
Thursday, January 22, 2009 @ 1:04:55 PM

Add me to the list of Vizio owners. I got mine for way cheaper than the Sony of the same spec and size. And all the complaints I can find on the net about said TV seem to have been taken care of with the model I got because that 47" wall mounted beauty has had no problems to date.

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King James
Thursday, January 22, 2009 @ 1:22:20 PM

I just don't understand why some1 would HD with a Vizio. I know they are way cheaper but...come on. Vizio's have horrible cool temp and mediocre picture quality. Westinghouse TVs are better than Vizios and Westinghouse sucks major ass. I'd rather put the rest on a dept store card and get the better TVs. But that's just me. I love my Sony TV.

--I'm not knocking ur choice Coverton, btw.

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The Cheat
Thursday, January 22, 2009 @ 3:11:22 PM

sony tv's are far from being the best! i own a lot of sony stuff and their tv's are actually quite bad for the price you pay. a good tv for price is samsung and a good tv in the lower price bracket is LG

even the sony top of the line is inferior to similarly priced models from other companies like samsung.

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coverton341
Thursday, January 22, 2009 @ 5:26:10 PM

No offense taking James, but I seriously have not noticed all the bad things you are pointing out about the Vizio's. I have noticed the black level is off and yes the temperature thing is a big deal but since it is winter right now I can actually, no kidding, heat my living room with just the TV and save on running the heater, so sometimes you have to turn those negatives into positives. And in all honesty I have done a comparison from my Vizio to my in-law's Sony Bravio of the exact same size and the only difference I can determine is the black level but I did get my Vizio after there were tons of costumer complaints about the look and about the PSU burning up in about 7 months so it may be possible that they have fixed some of their short-comings.

I mean, how dare you question what I buy? Having an opinion of your own and such. It's just unforgivable.

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King James
Thursday, January 22, 2009 @ 5:49:05 PM

lol. Yes, how dare i. I feel so ashamed.

:(

Sidenote: And I don't know what this guy, "the cheat", is talking about. High-end Sonys pwn high-end Samsungs. And that's a fact. The roles get switched on the lower end LCDs though.

Last edited by King James on 1/22/2009 5:51:45 PM

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Wage SLAVES
Friday, January 23, 2009 @ 1:13:24 AM

I've got a mid ranged Samsung and Im super satisfied. I didn't get a Sony because they were a lil late to the LCD scene and on top of that their prices are way higher than competing models.

Plasmas are gross. They make me feel sick if Im standing right in front of it. DLP those lights burn out FAST. My friend replace his 3x in 2 years! At $200 buck a light F-that!

It seems OLED is gonna soon OWN all.

Last edited by Wage SLAVES on 1/23/2009 1:14:25 AM

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LegendaryWolfeh
Thursday, January 22, 2009 @ 12:25:31 PM
Reply

Lol that guy in the pic looks like he's looking up at the 3bil loss on a screen and is about to have a heart attack, "OmG mY sToCkS!!!!"

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coverton341
Thursday, January 22, 2009 @ 1:02:56 PM

Oh you beat me to it. Dude looks like he just shat his pants and had a coronary all at the same time as uttering $2.9 billion.

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kidgrid
Thursday, January 22, 2009 @ 1:19:52 PM

lol AHHHHH I HAVE A PAIN IN MA CHESS!

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King James
Thursday, January 22, 2009 @ 1:26:03 PM

He looks like he thought it was .29 billion and then someone came over and moved the decimal point over like its a Price is Right game. LOL!

He's like, "No!!! My 3rd mansion!!!"

Last edited by King James on 1/22/2009 1:26:14 PM

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ec0li
Thursday, January 22, 2009 @ 2:37:04 PM

LMAO on that picture. Not LMAO on their financial status. K2 can't come soon enough. Everyone who comments on this site should buy a copy. Sony needs some serious revenues and I think they have one more quarter till the end of their fiscal year.

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coverton341
Thursday, January 22, 2009 @ 4:58:06 PM

I seriously keep opening this article just to see the picture of this guy because it is cracking me up. It is a really long day at work today due to a dozen and a half of software issues and this guys facial expression is flippin' priceless

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somethingrandom
Thursday, January 22, 2009 @ 8:57:28 PM

That's CEO Howard Stringer.

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Wage SLAVES
Friday, January 23, 2009 @ 1:16:43 AM

@kidgrid

"And I can't Breef!" Lol (assuming you were talking about George Lopez)

Last edited by Wage SLAVES on 1/23/2009 1:17:57 AM

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ec0li
Friday, January 23, 2009 @ 1:47:45 AM

@somethingrandom

I gave you a thumbs up even though the picture itself is labeled "Sir Howard Stringer". o.O

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jerocarson
Thursday, January 22, 2009 @ 12:43:01 PM
Reply

oh ma gush!

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Scarecrow
Thursday, January 22, 2009 @ 1:04:13 PM
Reply

*blames Bush*

They can make this money back overa time.
Economics are that way, balance of negatives and pluses.

Overtime through softward the losses will be erased, and the ps3 starts making huge profits.

Last edited by Scarecrow on 1/22/2009 1:05:38 PM

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King James
Thursday, January 22, 2009 @ 1:29:21 PM

Quote from one of my favorite cartoons:

"He [Bush] knows nothing about honor, or the way of the sword."

LOL...Venture Bros. is so comical.

Last edited by King James on 1/22/2009 1:29:59 PM

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coverton341
Thursday, January 22, 2009 @ 1:44:40 PM

Quoto from my favorite cartoon:

"Why do you make me hit you"

Aqua Teen Hunger Force, Master Shake

YEAH BABY!!!!!!!!

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faraga
Thursday, January 22, 2009 @ 1:13:28 PM
Reply

will this mean a price cut 4 the bravia or something? cuz at my home we're still watching low-def...
and to PS3-Wizard, i've got an old vaio, wich is a great laptop, for its age, not on it now, got a slightly better dell inspiron, got that of my sister who bought an apple notebook

but my vaio once died, (probably due lying on the floor of a car when driving over a speedbumb), and went to a repair dude with it, but he said he couldn't repair it cuz the architecture of the device. so i gave up,

when about 2 months later i got my current laptop and i though let's switch harddrives so i won't lose any stuff, and got my vaio, tried to put it on for one last time and who knows,
IT WORKED!!!

now i gave it the nickname zombiecomputer, which probably means the same in english :-)

Japanese things are just strange...

Last edited by faraga on 1/22/2009 1:14:46 PM

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Robochic
Thursday, January 22, 2009 @ 1:19:23 PM
Reply

@LegendaryWolfeh
damn that is so true LOL!!

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Geobaldi
Thursday, January 22, 2009 @ 1:20:15 PM
Reply

Don't even start with the ''blames Bush'' crap. It's the Democratic policies put in place during the Jimmy Carter years and further enforced by the Democratic Congress of 2004 that helped get things to this point. It's sad to see Sony cutting back on their TV's. They make great products. Wonder how much the loses are contributed to their motion picture division since Tinsel Town has had a bad run for a while now.

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King James
Thursday, January 22, 2009 @ 1:27:17 PM

lol...rrrriiiiiggggghhhhhtttttt.

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coverton341
Thursday, January 22, 2009 @ 1:46:18 PM

Video game sites should talk as little about politics as possible since the reason most of us play games in the first place is to remove ourselves from things like politics so moving on.

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King James
Thursday, January 22, 2009 @ 2:15:10 PM

Right.

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Tim Speed24
Thursday, January 22, 2009 @ 1:24:18 PM
Reply

Well if anybody cared to notice, Microsoft announced they will be laying off Thousands of employees next month. The pinch is being felt in all businesses. Sony is not the only one.

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city96
Thursday, January 22, 2009 @ 1:35:19 PM
Reply

SONY make the best and it shows. best TVs best looking PCs and Best all round Game consoles. SONY have been around for years and theyve always been reliable.

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faraga
Thursday, January 22, 2009 @ 1:52:25 PM
Reply

one thing i still don't get:
if everyone's losing money, then where is all that money going to???

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somethingrandom
Thursday, January 22, 2009 @ 9:02:21 PM

People stealing it. The most common case is people not paying their loans.

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faraga
Friday, January 23, 2009 @ 11:12:41 AM

yeah, but mostly they didn't pay cuz they were allmost broke themselves, so, still... WHERE is all the money???

Last edited by faraga on 1/23/2009 11:13:12 AM

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Phoelix
Thursday, January 22, 2009 @ 2:36:51 PM
Reply

So I guess all the football commercials advertising the HDNA TVs with, "If we record the game on a Sony...shouldn't you watch it on a Sony?" didn't work.

Probably karma for them since I absolutely hate marketing strategies that involve some form of misleading or misinformation to sell a product.

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dirdiggler
Thursday, January 22, 2009 @ 3:37:41 PM
Reply

Got a 52" sony xbr4 3200$ last year, seen ton's of lcds since an none compared to this one. Its like everything else you want the best you pay for the best. Best 3200$ i ever spent. Now i want 1 of them xbr9 tvs as good ole chris farley said AWWWWESOOOOMMME!!!!

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aaronisbla
Thursday, January 22, 2009 @ 4:36:34 PM
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i dont know man, at this tournament i went to in chicago for soul calibur 4, all the games was played on various hdtvs, that vizio looked damn fine, even compared to the aquos and the bravia that was there. depending on the price, id take the vizio

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coverton341
Thursday, January 22, 2009 @ 5:00:35 PM
Reply

The Microsoft layoff rumors turned out to be true, after all. Making its earnings announcement a bit earlier than anticipated, the company today revealed that it would immediately drop 1,400 employees

DAMN!

So timster as you can see yeah they are going to let go of 5000 people over the next 18 months but they cut gave the axe to 1400 today

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Kingharris
Thursday, January 22, 2009 @ 5:33:59 PM
Reply

When will Sony EVER make money with the PS3? Already that $40 Loss, then people wanting a price drop. Seriously what can Sony do?

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MetalHead09
Thursday, January 22, 2009 @ 6:45:01 PM
Reply

i think sony will weather the storm just fine. i cant wait for killzone 2 and i might just buy 2 just so sony get a lil bump from me, every penny counts right?

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Qubex
Thursday, January 22, 2009 @ 8:05:07 PM
Reply

So the only winner is Nintendo then... the one company that doesn't make real consoles or has any decent games...

Q!

"i aM hOMe"

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ec0li
Thursday, January 22, 2009 @ 8:15:43 PM

They have a real console and they have some great games. The problem is they have too much shovelware and don't make enough games for hardcore gamers. It's insane how much money they make. They don't employ anything close to the same number of people as Sony and Msft yet they can make billions in revenues and profit each year.

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LCF
Thursday, January 22, 2009 @ 8:17:28 PM
Reply

Of all the things Sony had made and pioneered...Sony makes the best damn lasers on the planet.

But to the topic.This is the worst economic crisis we have ever had in the history of the world.The whole world is in the pit fall. It had to happen right when Sony is trying to push the world into the HD era no less.

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Wage SLAVES
Friday, January 23, 2009 @ 2:00:07 AM

It is a tragedy.

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Aftab
Thursday, January 22, 2009 @ 8:48:50 PM
Reply

I'm upset with Sony's HDTV business. They've been blowing way too much money on this Bravia Engine technology, mean while producing PQ not any better than their Samsung counterparts, while still costing hundreds of dollars more. Lack of cost effectiveness is killing their business. Sony needs leadership if they want to be leaders in the industry, and they need it now.

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superjew
Thursday, January 22, 2009 @ 11:56:06 PM
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It's pretty obvious why, everywhere you go Sony TVs are a few hundred bucks more than the competition, and they aren't really worth the difference. So long as their low end HDTVs are overpriced, no one will buy them.

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bamf
Saturday, January 24, 2009 @ 9:19:24 AM
Reply

I have 3 Sony Bravia's in my house all expensive at the time I bought them. Looking at what a new Bravia 2 cost today, I wish I waited. I can get a 40" Sony Bravia 2 cheaper than what I paid for my bravia 26" 2 years ago. My bravia "40 3 yrs ago cost £1500. I've seen 32" bravia 2 for £350 and less. They're cheap now and people who say they can't afford them is rubbish. All their money goes on alcohol on the weekend, cigarettes, fueling their bigger engine cars they all just bought on finance, when they can save thousands a year on a smaller car.

In the UK if you look about you'll find that the prices of food is cheaper, prices of cars are 60% less than 2 years ago according to a report, generally prices are falling everywhere yet we still all earn the same amount of money (unless you've been made redundant).
My monthly expenditure is no more than it was 2 yrs ago, in the last year I've had 2 pay increases, only slight but it all adds up. Oh and our tax is down to 15% from 17.5% so we all earn more than we did last year. And products are cheaper because of this.
Where I work 2008 was the best year ever for us.

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