Thu, Apr 12, 2012 | 13:29 BST
Sony doubles down on games, confirms 10,000 lay-offs
New CEO Kazuo Hirai has revealed Sony’s strategic plans to dig back out of several successive loss years, focussing on core businesses and making significant cuts.
“Sony is positioning digital imaging, game and mobile as the three main focus areas of its electronics business and plans to concentrate investment and technology development resources in these areas,” the company said in a press release.
“By growing these three businesses, Sony aims to generate approximately 70% of total sales and 85% of operating income for the entire electronics business from these categories by FY14.”
In the gaming stream, Sony highlighted the PlayStation 3, Vita and PlayStation Network as its core platforms, failing to mention the ageing but still viable PSP whatsoever, in conjunction with “accessories and peripherals”.
“The Company also aims to increase sales by enriching its catalog of downloadable game titles and subscription services available through the PSN platform, and also by expanding the lineup of PlayStation Suite compatible devices and content,” it said.
“Sony will target game business sales of one trillion yen and operating income margin of 8% by FY14.”
In addition to refocusing on three successful streams, Sony intends to ‘turn around’ its ailing TV line; expand into emerging global markets; and launch new businesses.
Finally, it intends to ‘realign the business portfolio and optimise resources’ – restructuring headquarters and subsidiaries.
“As a result of these measures, Sony estimates that the headcount across the entire Sony Group will be reduced by approximately 10,000 in FY12,” the company confirmed.
The total number of layoffs includes staff expected to end up part of external companies and subsidiaries as Sony realigns its corporate structure, and will “consider various measures to secure continuity of employment for employees at their new destinations”.
The restructuring is expected to cost ¥75 billion yen during FY12, but Sony is targeting sales of ¥6 trillion with an operating income margin of 5% in its electronics business, in FY14.
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Posted in: Financials, Jobs, PS3, PSN, PSP, Sony, Vita, sony financials
Tags: Kazuo Hirai, layoffs
26 comments
#1
Patrick Garratt
12/04/12, 7:52 am
*thumbs*
Go Kaz, etc.
#2
tenthousandgothsonacid
12/04/12, 8:03 am
Good luck. You’re gonna need it
Please don’t go bankrupt before the ps4 comes out. I don’t want to have to buy a microsoft console, they’re made of bogies and fail
#3
mathare92
12/04/12, 9:07 am
Good luck to all 10,000 of them. And to Sony as well; do not want to see them recede into obscurity… or worse.
@2 “Bogies and fail”
#4
manamana
12/04/12, 9:31 am
@2 and because you are blinded by your fanboyish attitude you are missing out some great games? Now thats what I call a hardcore gamer *cough*
Btw. 1 trillion yen only from game business sales by FY14? He has high hopes for PS4 and their launch games. So do I.
#5
Dragon246
12/04/12, 10:46 am
4, not only for games, read carefully.
#6
OlderGamer
12/04/12, 1:18 pm
Sony has to pull a Nintendo.
A very strong 1st party line up.
And.
A very affordable hardware price(manufactoring and retail).
If they can’t bring out PS4 for well less then 350usd they are better off not bringing it out.
#7
manamana
12/04/12, 1:42 pm
@5 I did, dint I? “Sony will target game business sales of one trillion yen …” What else is the meaning of game business sales, if not PS3&4, Vita and PSN?
#8
earlyrock
12/04/12, 2:01 pm
Weirdly, this could be what Sony needs.
All the best to ‘em!
#9
Da Man
12/04/12, 3:19 pm
#6, they should start by producing a good video game first.
#10
dravenkaze
12/04/12, 3:39 pm
@9 they do, you should buy them, but this isnt just about games its about tv’s cams, music and so on….sony do alot more than just games
#11
Da Man
12/04/12, 3:47 pm
#10 Nope. And I shouldn’t.
#12
LOLshock94
12/04/12, 3:51 pm
die bitchs diee
#13
StolenGlory
12/04/12, 3:54 pm
@12 Who should die? The 10,000 people who no longer have a job and will probably have difficulty supporting themselves and/or their significant others?
#14
Johnny Cullen
12/04/12, 3:59 pm
LOLshock, I’m telling you now. Enough! One more and you’re gone. Final warning.
#15
StolenGlory
12/04/12, 4:00 pm
@14
/cheer.
#16
LOLshock94
12/04/12, 4:07 pm
wait a warning because i said “die bitchs diee” which was aimed at sony and not the 10000 people…lul k il just try and forget the time were back_up posted shit about pc gamers and stuff for about 2 weeks
#17
themadjock
12/04/12, 4:24 pm
@16 bye… come back in ten years when you’ve finished school
#18
Da Man
12/04/12, 4:26 pm
LOLshock, don’t go. Just don’t overdo it.
#19
LOLshock94
12/04/12, 4:52 pm
@17 haha why so much hate bro?
@18 i didnt overdo anything
#20
Da Man
12/04/12, 4:56 pm
Top things Sony fan(boy)s hate:
- Halo
- Cross game chat
- Kinect
- Bayonetta
- Splinter Cell
- Tomb Raider
- LOLshock94
#21
OrbitMonkey
12/04/12, 5:02 pm
^ Top things 360 fanboys think Sony fanboys give a fuck about *fixed*
#22
LOLshock94
12/04/12, 5:05 pm
@21 but you just given us a fuck…
#23
Da Man
12/04/12, 5:06 pm
That list has been proven in independent internet research. The reasons are obvious.
#24
OrbitMonkey
12/04/12, 5:16 pm
@lolshock. No I didn’t you just think I did
#25
TD_Monstrous69
12/04/12, 10:42 pm
Basically (to me) this sounds like Playstation’s only going to get even better, and reading this made me happy to own a PS3. Looks like Kaz has a really good vision on where to take Sony. I wish him nothing but the best, and hope he and Sony succeed.
#26
Meta_Dragon
29/04/12, 6:49 am
Good. It seems like Kaz has a good head on his shoulders. I hope he does well for Sony. My best wishes to Sony and to a great year. Though i doubt a ps4 will ever happen. Not to bad talk Sony, but i think Microsoft has them pretty much in a corner, console wise.