Bloomberg: Kaz Hirai's credibility takes hit after forecast

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#1 Posted by nintendoboy16 (25049 posts) -

Sorry for the second thread already today, but...

Bloomberg

After Sony makes the forecast of a $1.1 billion loss, Kaz's authority is called into question, even getting a certain complaint a rival CEO has been getting for years compared to the previous CEO (hint: Please Understand!).

A shame, Sony. Hope you pull through and I hope Kaz gets the company up as well.

#2 Posted by R3FURBISHED (9443 posts) -

To me, they painted a picture where Hirai doesn't want to cut fat inside Sony in order to reduce some of the losses Sony has been living with.

Hirai has now revised Sony’s profit forecast down twice in four months and is showing few signs of developing hits to compete with Apple Inc. (AAPL) and Samsung Electronics Co.

Thats a big thing as well in my eyes, having your main competition be Apple and Samsung...that's tough. To be frank, I don't see how you win that battle.

#3 Edited by Vecna (3215 posts) -

Nintendo and Sony should merge so the execs can take turns giving apologies.

#4 Posted by Evo_nine (1333 posts) -

So who will compete with Microsoft after Nintendo and sony go out of business

time to step up apple and Samsung, Microsoft needs some competition.

#5 Posted by Salt_The_Fries (7400 posts) -

Kaz will ultimately become what he's really been for the past few years but not everyone accepted it - a joke.

#6 Posted by HitmanActual (191 posts) -

He'll be fine.

#7 Edited by Caseytappy (2095 posts) -

Thank you Kaz !

#8 Posted by blue_hazy_basic (26703 posts) -

Here's the thing its not Kaz that puts together those projections. He has to rely on the people below him to make those forecasts and this perhaps belies that there's rot all the way through the Sony hierarchy. However, I'm not sure Kaz really has a clear direction for the whole company and he might have been better sticking to the PS division.

All I can say as a gamer is I don't want to have to choose between just MS, Nintendo and handhelds/mobile for my non-PC gaming.

#9 Posted by jake44 (1693 posts) -

Here's the thing its not Kaz that puts together those projections. He has to rely on the people below him to make those forecasts and this perhaps belies that there's rot all the way through the Sony hierarchy. However, I'm not sure Kaz really has a clear direction for the whole company and he might have been better sticking to the PS division.

All I can say as a gamer is I don't want to have to choose between just MS, Nintendo and handhelds/mobile for my non-PC gaming.

Well said.

#10 Edited by shawn30 (3687 posts) -

He's got a plan and he's trying to execute it, but no doubt cleaning up the mess of divisions he was never a part of isn't easy. They are sinking slowly, but there's still time to plug the holes. They have about a year before things go super nova and some really bad shit starts going down. PS4 sales are not enough to save the company, so gains, cuts, and new products must drive other areas of growth. They have a up hill struggle ahead.

#11 Posted by nyzma23 (840 posts) -

they should fire kaz because he failed raise sony from the slump and replace him with mark cerny

#12 Posted by LegatoSkyheart (23658 posts) -

@Vecna said:

Nintendo and Sony should merge so the execs can take turns giving apologies.

Ha, what kind of world would accept The Nintendo Playstation?

#13 Edited by cainetao11 (14357 posts) -

@shawn30: well said. They're unfortunately in a position where many more will lose jobs, in order for this company to stay afloat. Major cutbacks are the only thing that helps at this point. Even the ps4 is sold at a loss. The losses have to stop.

#14 Edited by Gargus (2147 posts) -

To me, they painted a picture where Hirai doesn't want to cut fat inside Sony in order to reduce some of the losses Sony has been living with.

Hirai has now revised Sony’s profit forecast down twice in four months and is showing few signs of developing hits to compete with Apple Inc. (AAPL) and Samsung Electronics Co.

Thats a big thing as well in my eyes, having your main competition be Apple and Samsung...that's tough. To be frank, I don't see how you win that battle.

Its not impossible but it would require a veritable perfect storm to defeat one in sales, let alone both. So I don't see the problem really and he hasn't lost credibility. To overcome Samsung alone would be like a store that has 250 nationwide stores being bashed because they couldn't over take walmart in sales.

#15 Posted by gago-gago (8748 posts) -

Keep up the good work Kaz.

#16 Posted by nintendoboy16 (25049 posts) -

@Vecna said:

Nintendo and Sony should merge so the execs can take turns giving apologies.

Ha, what kind of world would accept The Nintendo Playstation?

*Nintendo PlayStation releases*

To phrase Todd in the Shadows - "And then the world exploded..."

#17 Posted by TwistedShade (2982 posts) -

I'm not sure what people expected, he's trying to fix the company and is currently working to clear through the divisions that don't matter anymore. Obviously that's going to take some time and it's understandable they're going to have losses, but the Company should have taken the actions he has started ages ago and I think once they buckle down and focus on the industries that matter it'll get better for them.

#18 Edited by charizard1605 (52582 posts) -

It takes time to right a ship gone wrong. Sony as a company had incredible inertia, and Kaz has done an incredible job countering it in the short time that he has been in charge. If someone actually expected him to completely fix up Sony within a year, then I have to question their intellectual and cognitive capacity.

#19 Posted by Heil68 (40448 posts) -

He'll be fine.

After all he gave us the PS4! Thank you Lord KAZ!

#20 Posted by reggy72 (121 posts) -

Sony's woes have been on the cards for over 20 years, Japanese business practises my work at home but not so well in other territories. In the UK they did use to have a DVD player manufacturing plant for the European market based in Wales(possibly long gone now), this plant was run based on its T/O not its bottom line or P/L balance sheet, any attempt by local management to address the balance was always shot down from the Japanese HQ management who basically buried their heads in the proverbial sand, I know this as at the time I worked in senior financial recruitment, and the frustrations from the higher financial departments within this facility who worked hard to make it profitable could not due to their Japanese overlords dictating policy, I found some great candidates from here who couldn't stand the alien approach to business, you could apply this scenario worldwide to the whole group. Now time has caught up with these maladjusted facilities and the pain Sony may have to go through will be large. This was a long time ago now so it may be not relevant to the group today but it gave me some insight all those years ago and it may ring true still today.

#21 Posted by lhughey (4159 posts) -

It takes time to right a ship gone wrong. Sony as a company had incredible inertia, and Kaz has done an incredible job countering it in the short time that he has been in charge. If someone actually expected him to completely fix up Sony within a year, then I have to question their intellectual and cognitive capacity.

You may have missed the part where they announced they would be making a profit, but have revised their expectations to losses twice.

Its possible that Kaz and crew knew they wouldn't pull a profit this soon, but they threw out a false figure to get people investing again. They needed capital, and the best (only) way a public company can raise capital is through stock, especially when your credit rating is not very good. The company is a large company and it's going to through not only a size change, but a culture change. These things lots of time. I wouldn't expect Sony to consistently profitable for another 3 years or so. Yes that number was pulled outta my butt. :)

#22 Posted by GarGx1 (2220 posts) -

What's with all the doom and gloom threads about console manufacturers going to the dogs

MS are going to sell off Xbox (again!)

Sony are going bust (again!)

Nintendo should stop making consoles (again!)

There's only going to be one winner if all of that comes to fruition.....Gabe and his Steambox...hmmm, maybe not so doom and gloom after all ;)

#23 Posted by kuu2 (6397 posts) -

I am surprised it has not happened already (no I am not hoping for it). You can't lay out your vision and then back track on it multiple times while in the same process not listen to disgruntled shareholders. Plus the revising of revenue is never good for a CEO. He might not put the numbers together but he picked the people that did.

Now where did all those Kaz gifs go?

#24 Posted by speedfreak48t5p (4946 posts) -

Kaz will be fine. After all, he and Sony are the saviours of gaming with amazing hardware and world class exclusives.

#25 Posted by FoxbatAlpha (4598 posts) -

The guy is on borrowed time. I'm gonna miss the Kaz gifs.

I did always like him though. Very smart and well spoken I find nothing to not like about the guy.

A thread I did last year highlighted that Sonys engineers are very old school and have a lot of say in how things are done. Kaz's hands are tied a lot of the time so if he if fired a new puppet will just step in.

#26 Posted by jsmoke03 (12032 posts) -

dude isnt that a bit harsh after a year or two as ceo? he's turned the playstation division to more positive division. i think hes going to lose on the cameras/phones but has a chance with tvs if they play their cards right and stop overpricing everything compared to samsung. it will take longer but i think hes doing okay given the mess he was handed

#27 Edited by topgunmv (9899 posts) -

Didn't the previous slob that was running sony into the ground have the helm for nearly a decade?

Article sounds kind of sensationalist.

#28 Edited by superbuuman (2256 posts) -

@Vecna said:

Nintendo and Sony should merge so the execs can take turns giving apologies.

Ha, what kind of world would accept The Nintendo Playstation?

I would since already have Wii&PS3 & eventually WiiU&PS4. So it will be WiiPlaystation4U. :P

#29 Posted by Couth_ (9677 posts) -

The TV unit will lose 25 billion yen this year -- its 10th straight loss -- and Sony plans to split the unit into a wholly owned subsidiary. The world’s No. 3 TV maker kept its October forecast for sales of 14 million liquid-crystal-display sets after cutting it from 15 million last year.

Sony hasn’t ruled out selling the business in the future after receiving “various offers,” Hirai told reporters in Tokyo yesterday without elaborating.

Hard to imagine Sony leaving the TV business but they are definitely spread too thin for what they are offering right now

#30 Posted by Basinboy (10665 posts) -

Sony has serious issues that have been a decade or more in the making. Kaz's moves are appropriate but the critics aren't wrong - nobody looks to Sony anymore (outside of Playstation) for must-have consumer products.

#31 Posted by Sagemode87 (585 posts) -

@Evo_nine: Lol, it really sucks to be a Lem. Can't imagine being crazy enough to only want Halo, Gears, and Forza on the market.