Well, Sony is in a bit of a pickle! Sony estimated a $466 million loss by the end of this financial year. Things have gone far worse, as they have just told investors that the projected loss has now been amended to a whopping $2.14 billion. Let that sink in.
If you want the full nitty gritty, check out the financial report here.
This is the first time in the company’s history that it hasn’t paid an annual dividend to the investors: “This is the first time we’ve not paid a dividend and we feel that responsibility as management very heavily,” Kaz Hirai, Chief Executive states.
Sony blames the “competitive environment of the mobile business”, with their Xperia smartphones being overshadowed by brutes in the industry such as Apple and Samsung. This marks Sony’s fifth annual loss in six years. A tough job for Hirai, who wanted to turn the business around.
So how does Sony plan to turn this around? By “concentrating its efforts in certain geographical areas, premium lineups and reducing the number of models in its mid-range lineup”.
With the iPhone 6’s release date looming, and vows from companies such as Google and Microsoft to enter the emerging market with cheap smartphones, this marks a tough era for Sony. Can they keep up?
Despite the poor performance in the mobile market, the PS4 itself seems to be doing fairly well, with ten million consoles already sold. But the suffering in the mobile market bodes ill for the company’s success.
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