Sony President Kaz Hirai Promises to Fix Company’s "Money-Losing Structure" This Year

Hirai was heckled by shareholders questioning his performance.

Sony’s President and Chief Executive Officer Kaz Hirai promised shareholders he’ll fix the company’s “money-losing structure” this fiscal year.

Hirai made the promise at Sony’s annual general shareholders’ meeting in Japan, where he was heckled by attendees. The Associated Press reported he had to ask hecklers to keep quiet multiple times as he answered questions regarding his performance in leading the company, engineers quitting Sony, poor product quality, and his plans for “wearable” products, like Sony SmartWear.

"The best way to build our future is for Sony to remain Sony, and realize our motto to become a company that inspires and fulfills your curiosity," Hirai said, adding that Sony engineers had great ideas which will become real products.

So far, the PlayStation 4 has done well for Sony. The last official worldwide numbers put the PS4 at 7 million units sold (compared to Xbox One’s 5 million units shipped), and according to the NPD Group’s May sales report, it’s been the top-selling video game system in the United States for the last five months.

However, Sony’s once successful TV division has been losing money for the past decade. Earlier this year, the company also announced that it is selling its PC business and VAIO brand to Japan Industrial Partners, resulting in 5,000 Sony employees around the world losing their jobs. At the time, Sony also announced it will spin off its TV business and operate it as a wholly owned subsidiary. This transition, aiming to help Sony "further enhance its TV business' profit," is expected to be complete by July 2014.

It’s also interesting to note that only 4,662 people attended the annual general shareholders’ meeting this year, compared to 10,693 last year.

Got a news tip or want to contact us directly? Email news@gamespot.com

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emanuelmaiberg

Emanuel Maiberg

Emanuel Maiberg is a freelance writer in search of the Citizen Kane of burritos.
69 comments
tboy1018
tboy1018

sony lost 1.1 billion dallars people dont care they get damage  controlled by 8 million copy sold. Nintendo lose some money people go hay wire and put hate on them when really its  sony who is losing money. lol

lion2447
lion2447

Shareholders are the worst garbage out there.  There was a time in the past when a shareholder was someone who believed in the company and gave money to that company to help prop it up in exchange for a portion of the profits.  It was deserved in that they helped the company prosper.  Nowadays, they selfishly trade to make profit for themselves without regard to the companies they destroy.  If Sony didn't always have to pander to them and pay out dividends, that money could go to keeping employees employed.

rasterror
rasterror

Shareholders were always in it for the money. None just threw there money into a company just for the hell of it. You have some that just invest for the short term for a quick buck then you have some that are more involved in the company. It's always been that way.

rasterror
rasterror

Nintendo is fine. They lost a little money but have lots of reserves and are on the upswing. Sony on the other hand have been suffering billions in losses every year for almost ten years straight. The only time they made a quarterly profit was when they sold their American headquarters for $1.1 billion and made $600 million in profits.

dolemike626
dolemike626

sony will shape up. but i rarely see a bad article on microsoft on here. maybe because gamespot is sleeping with the ms boys. and i like how today i read 3 articles for xbox that says it is ok. and 1 for sony that says it is bad. hmm. pay off. sony gaming division is doing well. they are hurting on other areas.


ShutUpFanboys
ShutUpFanboys

@dolemike626 LMFAO, please shut up. 

"but i rarely see a bad article on microsoft on here"

yes because in 2013, there was nothing but positive articles about Microsoft on Gamespot. LMFAO!!!

Do you know how many people have posted the same drivel over the years here at Gamespot? saying Sonyspot or Microspot. just SHUT UP! Gamespot has no allegiance to either Sony or Microsoft you FANBOYS!!!!

rasterror
rasterror

Or maybe because Microsoft isn't losing money and maybe because you blind yourself to a of the negative articles Microsoft has had on this site for almost a whole year.

El_Zaggy
El_Zaggy

lol people in here. Sony is indeed losing money. But they are not in trouble right now. However, If this continues, they will be. We already know that the PS division is making money. I still wonders why this news is in a gaming site like gamespot, its unrelated to gaming. The only thing it does is giving ammunition for console wars and it makes also people think they know whats really hapening. also people think they are smart by saying this and that because they read it on the news while they no nothing about finances and how snoy manages it... unless people are work for the uper sony managements, which I dbout because people here tends to be uncultured and stupid.

rasterror
rasterror

They lost billions every year for lost the past 10 years so how are they not in trouble? And despite the PS4 sales the Playstation brand just lost $79 million this past quarter.

Trender_man
Trender_man

should have not spent money on all the 3D garbage

spacecadet25
spacecadet25

@Trender_man  Or wearable crap.  And I also heard in the past that they actually did try to work on tech that would be implanted into a human brain.  Stupid, stupid stuff.

emgesp
emgesp

Their TV's are way overpriced compared to the competition. Vizio's have really improved the picture quality in their displays and they have been getting solid reviews all around lately.  Why buy a $2000+ Sony when I can pay $1500 for a 65+" Vizio with comparable picture quality?

spacecadet25
spacecadet25

@emgesp  Good point, I never even considered a Sony t.v., not in a long, long time (before the days of flatscreen).  Vizio, Samsung, Toshiba, etc, all make great t.v.s at a much more tempting price than anything I've seen with a Sony label.

centurionwii
centurionwii

While the PS4 is selling well, it isn't really helping Sony make money - the PlayStation division lost $5.5 Billion last year, and has lost billions of dollars for Sony every year for over a decade.  It's the absolute worst-performing division in Sony over the last fifteen years.

centurionwii
centurionwii

@quicktim3 @centurionwii The PlayStation 4 was not a profitable device.  They had to pay for manufacturing of it with no sales of it to offset those costs.  The Vita still doesn't make a profit.  The PS3 doesn't make much of one.  Their games generally don't sell enough copies to be profitable.

This has been the case for years.

tom2750
tom2750

@centurionwii @quicktim3 5.5 billion just in 1 year just in the PlayStation division bullcrap the whole of Sony didn't even lose that much last year let alone just PlayStation and there games do sell more then well enough to make a profit multi plats sell almost as good on the PS3 as the 360 and some of them even sell better on the PS3 for example GTA V they don't even need to sell many multi plats to make a profit since they are multi plats they don't pay to have the game made the publisher pays for the developer to make the game and Sony makes money for every copy sold just for letting the game be on there console so since it doesn't cost money for Sony to make multi plats since they aren't the ones making them then Sony makes a profit straight away no matter what the sales are its the publishers that have worry about it selling a certain amount to make a profit not Sony PlayStation exclusives are another story since Sony puts in the money to have the game made since they own the studio (well not always the case many exclusives on the PS3 were not made by 1st party studios but many were so yeh) as for the PS4 not being a profitable device do you even listen to gaming news kaz hirai said the PS4 is already a profitable console all the gaming sites reported this in may so you're wrong the PS4 is already profitable as for the PS3 yes per console it probably doesn't make a huge profit but it would still make a decent profit these days probably just as much as Xbox 360 because while the PS3 costs more to make it also costs more to buy and they sell millions of consoles so yeh plus they make most money from the games as for the vita not making a profit link please

berserker66666
berserker66666

It all started with........FIVE HUNDRED AND NINETY NINE US DOLLARS.

fatalscorpion
fatalscorpion

@berserker66666 I remember that LOL I was like uhhh I'll check out what ms and ninty have and I definitely made the right choice ;)

tom2750
tom2750

@fatalscorpion @berserker66666 the PS3 was much better then the Xbox 360 overall and in exclusive games it destroyed the 360 so unless you got a PS3 or a WII you didn't make the right choice PS3 has 2 separate exclusives that each won more game of the year awards then every single Xbox 360 exclusive combined now that is just sad

Shadowdanc3r
Shadowdanc3r

I didn't know the Japanese were hecklers, just recently I heard a woman was heckled during a speech at an assembly meeting.

KimCheeWarriorX
KimCheeWarriorX

@Shadowdanc3r theres quite a bit of hecklers right here in the comments section of various articles here at gamespot who sometimes seem like they have no idea what theyre heckling about.

Shadowdanc3r
Shadowdanc3r

@Punk_Rooster @Shadowdanc3r  Yeah, some countries will hurl more than just insults.  :)  In some cultures, the bottom of footwear is one of the biggest offenses so they'll throw that.

Shadowdanc3r
Shadowdanc3r

@KimCheeWarriorX @Shadowdanc3r  Here we just call the fanboys and fangirls.  =p  I wasn't tying to attack the Japanese with my comment, I was just surprised they do this too because they're culture is so different.  I'm learning more and more that they can be quite brazen and sometimes more so than others I've seen.

stage4saiyan
stage4saiyan

Sony reminds me a lot GM before their bankruptcy. GM was counting on people choosing Chevy or Pontiac over their competitors because of the name alone. Times have changed...people are relying on reviews and user experiences more than they ever were before. Why would I want a Sony TV when the Vizio or Samsung next to it looks just as good, is the same size, yet costs hundreds less? 

Zerabp
Zerabp

@b00me @stage4saiyan Samsung generally cost more than sony on comparable models and last the same amount of time. Vizios TV's are notorious for their lack of longevity and while the are cheaper they cannot compare picture wise to Samsung and Sony. Mentioning vizio at all makes both of you appear blind.

RicanV
RicanV moderator moderator

Sony will bounce back. With all the troubles they were having they still managed to have one of the most successful console launches in history and maintain that success. They just need to find a way to take that success and apply it elsewhere. Much easier said than done.

rasterror
rasterror

I don't think Kaz can do some magical move to save Sony. It takes more than one person. But he needs to light the fire under their pants and get them working. They need to lower the prices of their merchandise to a competitive level. When I can save $1500 on a Vizio that has a better picture quality then Sony need to lower their prices as well. They also need to stop with the overpriced niche equipment. $800 4K proprietary players just don't cut it. They need to offer more and show why they once were the best of the best. To be honest I don't see Sony getting out of the black any time soon. i have a feeling they're gonna split off important sectors and sell assets/ I hope they make it out better but I'm honestly doubtful.

OldDirtyCR
OldDirtyCR

@rasterror Just to clarify, being "in the black" is good. It means it's profitable. Sony needs to get out of the "red" (aka red ink used to show negative/unprofitable numbers).

Thanatos2k
Thanatos2k

They're selling the PC division and spinning off the TV one.  They'll be in the black by the end of the year.


Also this has little to do with the PS4 which is doing well.

bunchanumbers
bunchanumbers

"The best way to build our future is for Sony to remain Sony, and realize our motto to become a company that inspires and fulfills your curiosity," he said. He also says... Sony engineers were filled with great ideas, which he promised to become real products, although they must all be fit to wear the "S-O-N-Y" label, he added, spelling out his company name.

Sony remaining Sony is whats killing them now. He is showing that Sony isn't dynamic enough to compete with todays electronics and is relying on its tarnished brand name. Come on Kaz get your act together.

jako998
jako998

N one buy's Sony's TV's because they are to expensive. Why should I spend 400 dollars on a Sony tv when I can find a TV just as good from Samsung, RCA and Panasonic and etc for a cheaper price ??? The mos Expensive TV to Date is $25,000 dollars and guess who its from ? Sony. And they wonder why there loosing money... STOP OVER PRICING YOUR PRODUCTS THAN MAYBE PEOPLE WILL BUY YOUR STUFF MORE OFTEN. I like Sony products very much but I not going to spend more money than I have to if I can find one cheaper.

PSYCHOV3N0M
PSYCHOV3N0M

@jako998 WRONG!!! Samsung has an 85-inch UHD 4K tv for $40,000. (Not saying that this is the most expensive tv because it is NOT. I'm just saying that Sony's $25,000 85-inch UHD 4K tv is not the most expensive tv to date. LG has or had one that costs $70,000 for a 102-inch non 4K)


Do your research.....

rasterror
rasterror

@Rayzakk @rasterror @neowarrior793 I'm not. Sure I can't stand Apple products and loathe their totalitarian business model, but I hate to hear of layoffs. If and when they fall many jobs will be lost and that's something I hate to hear. I've been there before and it's and a layoff is a horrible thing to go through.

rasterror
rasterror

You need to stay off of that stuff. It's seriously rotting your brain.

neowarrior793
neowarrior793

@rasterror @Rayzakk @neowarrior793 pride wt f are you on! do you even know what made so ny so rich in the first place? it was selling disks that was their core market. not there products they were all created the same time as everyone else. it was the fact that they were the first company to mass sell disks which at the time was used for everything. any disk you have ever used probably came from so ny but they have been undercut by everyone now, now we all use usb sticks disks are now redundant which makes the demand for them to decline more and more and more. over prices goods? there are more companies that sell products more expensive then so ny that are much worse for quality. no its the fact that we have changed to be reliant on other devices that sony aren't getting sales, people don't buy camcorders anymore they have their mobile phone, nobody buys a walkman anymore they use their mobile phone, people don't need tv's anymore we just watch it on a pc on netflix ect. it has nothing to do with there prices at all you said it yourself apple can easily sell stuff at high prices its how we have changed over the years to be reliant on a mobile phone to use for multiple devices. 


if you actually knew anything about so nys history you would know why they are and have lost so much money 

consolehaven
consolehaven

Apple products are awesome and worth every penny.

rasterror
rasterror

@neowarrior793 No, their arrogance lead them on this course. They thought they were like Apple where they could sell overpriced merchandise just on their name alone and they failed miserably. They wouldn't budge or change with the times and suffered for it. Why would someone buy a $250 Sony TV when a Vizio has a better picture quality and more features for $700? Remember when they said people should get a 2nd job for a PS3 and made so many arrogant statements? Well their pride caused them to fall and fall hard. Now they're finally starting to realize that but they still have a hint of arrogance. They need to restructure analyze the market, stop selling overpriced niche equipment, and be competitive with their prices. 

jellyman68
jellyman68

@Rayzakk @rasterror @neowarrior793 I can tell you now, that will never happen to Apple.
They've got a unique approach to design, a brilliant ecosystem, and the best customer service out of any company on the planet.

rasterror
rasterror

@consolehaven Give me an iPhone or iPad beter and more useful than my Note 3 and Nexus 7 and we'll talk. And I have an iPod touch and two iPads so I know how they function.Plus the fact that I just bout two 64 GB cards for less than $30 and Apple wants to charge you $200 extra speaks volumes. Overpriced and close only to their ecosystem. I'll pass.

PSYCHOV3N0M
PSYCHOV3N0M

@rasterror @neowarrior793 "Why would someone buy a $250 Sony TV when a Vizio has a better picture quality and more features for $700?"


STOPPED READING THERE... LOL @ Vizio hahaha (-__-)