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Sony executives to take pay cuts, forsake bonuses – report

Tuesday, 13th May 2014 07:33 GMT By Brenna Hillier

Sony executives including Kazuo Hirai will accept pay cuts and forsake their bonuses this year as the PlayStation parent company turns in its fourth consecutive annual loss, according to a report from the financial world.

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The Wall Street Journal did not name its sources in claiming executives will experience pay cuts of up to 50% and be passed over for bonuses.

The report follows Sony’s addition of an extra $200 million to its forecast losses, resulting in an expected annual loss of $1.2 billion – well down on the profits it had forecast previously.

Although from a gaming perspective Sony is doing pretty well, with the SCE division a highlight of its financial reports, its TV, camera and other consumer electronic businesses have floundered for several years now. In the last five years, it has turned in four annual losses.

Some of the trouble this year comes from relatively newly incumbent CEO Hirai’s dramatic restructuring of the company, with the TV business spinning off into a separate unit and the Vaio line being sold off.

Sony’s trouble are so widely known and acknowledged that one Square Enix producer felt comfortable saying the publisher is doing Sony a favour in buying its stock back. Its stock has been junked by investment firms.

Thanks, IGN.

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12 Comments

  1. derpex

    Sony is selling or splitting off their lossy businesses (Vaio, TVs) and focusing on their profitable divisions. This means they’ll soon cut their losses and start turning a profit. You should be worried if Sony WASN’T cutting those losing divisions, but they’re making the right business decisions. They won’t ever be an empire again but they aren’t going under.

    The gaming division and first party studios are well funded and making a profit. During the quarter ending 31st December 2013 the Game business made a profit of $172m off the back of an impressive 64.6 per cent rise in sales year on year. Sony is in for a year or two of losses and restructuring, then provided their profitable divisions stay profitable, they’ll be on solid ground.

    Sony is still worth 18.5 billion. They just aren’t bringing in enough revenue or profits to bring that number up, and for a time, and probably for a few quarters here or there for the next few years, they might lose money. They also obviously have working capital, because they have games in development right now, and are able to market their newest system and do what they have to do to sell their products. If Sony were on the brink of bankruptcy, we wouldn’t be seeing AAA game announcements with budgets ranging from $50-100 million dollars. If they were on the brink of bankruptcy, they wouldn’t be buying Gaikai, or investing in new tech such as Morpheus or the PS4. PS4 will make a net profit, and Sony won’t go bankrupt.

    Sony Game, Financial Services, Devices, Music, Mobile Products & Communications, and Pictures are all profitable divisions.

    Sony’s market cap is 18.65 billion as of today (2014).
    Market cap in 2013 was 17.6 billion it has gone up since then.
    Sony is ranked #80 in world as the most valuable brand 2013.

    Sony is ranked #506 in the global 2000
    #87 in Sales
    #171 in Assets
    #547 in Market value
    78.52 billion dollars in sales in 2013

    #1 6 months ago
  2. Eregol

    @derpex
    You keep that to hand for moments like these do you?

    Completely agreed though.

    #2 6 months ago
  3. dreamcastnews

    Please understand.

    #3 6 months ago
  4. derpex

    @eregol lol yes

    #4 6 months ago
  5. Luciferous

    @derpex It’s leaving out information like you just provided that causes so many knee jerk reactions. The people who work for the Playstation division probably wish they were a separate company altogether.

    #5 6 months ago
  6. Gheritt White

    @derpex It’s almost like Psychotext never went away!!

    #6 6 months ago
  7. super3001

    desperate times. not even paywall and microtransaction can save sony. rip.

    #7 6 months ago
  8. Legendaryboss

    @dreamcastnews Ha. Nice!

    Topic: Doomed.

    #8 6 months ago
  9. dreamcastnews

    Sony will be fine, the PS4 sells like hot cakes and it’s a brilliant machine to boot with loads of support. They will just sell off the divisions that don’t make the money like the Vaio business.

    #9 6 months ago
  10. ManuOtaku

    To tell you the truth is sad to not see sony productd like tvs, etc doing not so good, they are one of my favilorite brands for electrodomestics, alongside samsung. Since kid my tvs, vinyl discs players, cd players, music equipments, etc. Most of the time i did prefer to pay more for the great quality.
    I hope they find a way to recapture those markets, instead of selling them.

    #10 6 months ago
  11. ManuOtaku

    And although i felt burned a few timez, for example with the took of the other os on the ps3, i will keep getting products wirh sony name brand.

    #11 6 months ago
  12. majormayhem70

    Yeah, Sony needs to widdle it down to the PS4. Samsung is killing them every which way but loose. I used to own a bunch of Sony products, and now I look around my house and it’s full of Samsung products. I didn’t even realize that that was my buying trend.

    #12 6 months ago

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