7 billion this year
7 billion this year
Japanese consumer electronics giant Sony is in some serious trouble. They announced that they're heading for an even bigger annual loss this year, to the tune of $2.7 billion dollars. Adult M1574A NIBP CUff It's Sony's fourth straight year of losses, giving incoming CEO Kazuo Hirai some immense challenges to overcome in getting the company back on track.
Sony cited unfavorable foreign exchange, market conditions and the devastating floods in Thailand that damaged much of their manufacturing. In addition, they've had to deal with innovative companies like Apple taking a much larger share of their traditional markets. The new CEO made his name at the company for developing the Playstation brand, Sony's one bright spot in a few years the Playstation actually saw increased sales for hardware and software this year, though troubling reports suggest their new portable system, the Playstation Vita, might be seeing very weak sales.
"It won't be easy for Sony to regain its lost ground under new leadership, as its overall competitiveness has sharply weakened," Kim Young Chan, analyst at Shinhan Investment Corp in Seoul, told Reuters. "It's got structural problems that will take years to fix."
Sony made its name with portable electronics like the Walkman in the 80's, but steep competition in that sector has caused their stock to drop nearly two thirds in just six years. Hirai is warning of pain in the future as the company tries to right itself.
"I have a very strong sense of crisis about the environment surrounding us," Hirai said at a news conference. "We cannot be afraid to make painful choices for the future of Sony. Our rivals and the operating environment won't wait for us."
Its television division is one area where some suspect cuts might be made, though Hirai has stated that they won't be fulling pulling out of the market anytime soon.
Meanwhile, Sony has also stated that it doesn't plan on revealing details for the Playstation 4 anytime soon, even as rumors for the next generation Xbox begin to build steam. If it allows Microsoft to take more control over the lucrative console market, they could be in for much tougher times indeed.