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Randoms, Zahi Sahli

Sony Corporation Sets Record Deficit

Sony Corp. registers its fourth consecutive annual loss, this time setting a record deficit of 457 billion yen ($5.7 billion).

The majority of Sony’s loss is related to the corporation’s recent inability to rival other TV manufacturers including South Korea’s Samsung Electronics Co.

Sony also received a major blow after the 2011 Tsunami hit Japan, causing considerable supplier and factory damage in northeastern Japan while the flooding in Thailand also disrupted production.

Sony, however, is looking to turn the numbers around under its newly-appointed president, Karzuo Hirai.

Hirai, who headed the gaming division and built his career in the US, is planning a return to profit for the fiscal year through March 2013 at 30 billion yen ($375 million).

To aid its comeback quest, the company will be cutting 10,000 jobs – about six percent of its global workforce.   

The electronics and entertainment company’s recent decline is the worst in its 66-year corporate history.

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One thought on “Sony Corporation Sets Record Deficit

  1. “Hirai, who headed the gaming division and built his career in the US, is planning a return to profit for the fiscal year through March 2013 at 30 billion yen ($375 million).”

    You made a bad business decision to implement blueray technology (which is still trying to enter the market) in the Playstation 3 to stop piracy (in countries that you didn’t even account for in the sales) which led to less PS3 sales in the Middle east (since people buy the actual console but not the games since they pirate them, and those console purchases are actually gain that was not accounted for), which gave the competitors Microsoft and Nintendo a chance to retaliate.
    Then you went and made the PSVita while there was no demand for it.

    Sony is losing in the Tv business, in the console business and got a major blow from the tsunami.
    If they keep moving with the same strategy, the giant will fall.

    Posted by Jawad | May 11, 2012, 1:24 pm

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