Now we know why Sony wanted to announce yesterday that Kazuo Hirai will replace Howard Stringer as CEO in April. U.S. shares are down about 5.4% in pre-market trading after the electronics and entertainment giant released a fiscal 3Q report filled with tales of woe — including in its filmed entertainment and music businesses. In the last three months of 2011, the company generated a net loss of $2B, down from a profit in the period last year, on revenues of $23.4B, down 17.4%. What’s more, Sony lowered its forecast for the fiscal year ending in March: It now expects to wind up with a $1.2B operating profit, which is 10.2% lower than it predicted in November. Sony’s biggest problem is the declining sales of LCD television sets in Japan, Europe, and North America. Revenues for Consumer Products and Services fell 24.4% to $12.8B in the quarter. Revenues grew for filmed entertainment, by 7.7% to $2.1B, but due to high marketing costs and the disappointing performance of Arthur Christmas the unit’s operating profit fell 84.8% to $9M. The Music operation also struggled with sales down 11.7% to $1.6B, and a 21.7% decrease in operating income to $196M. Bestselling titles included Adele’s 21 and music from the TV show Glee.


Sent a letter to Sony last month telling them I would never buy another product with their name on it. Why? For thirty/forty years Sony was a name synonymous with quality, good engineering and value for the money. My last two, or three, purchases have convinced me otherwise. Am not going to pay a premium price for shoddy goods. So bye, bye, and good luck. And from this report Sony is suffering overall. So I wasn’t imagining things.
That’s funny, because I’ve been saying the same thing about Panasonic!
What about Sony’s video game division? Did the Playstation 3 and any of its games generate profit? The Vita is coming out at the end of the month, so how vital is the Vita to Sony now or is the company not going to spend any money on marketing it? It just would have given me a complete picture if the video games department was included–if video games added to Sony’s money troubles.
It is so sad to see an iconic company like Sony continue its downward fall in both consumer products and entertainment.
The fall from the top of the mountain is a slow and painful process…just ask Kodak.
Used to work at Sony Pictures. Worst company ever. Management has no clue, particularly in the territories. Cronyism is rampant and incompetence the best way to be promoted… because if you don’t know what you do you’re of no danger to your superiors. Thinking different, which is the road to innovation, has become a sure bet to let go. Sony? Make. Shit!
Used to work at Sony Pictures. Worst company ever. Management has no clue, particularly in the territories. Cronyism is rampant and incompetence the best way to be promoted… because if you don’t know what you do you’re of no danger to your superiors. Thinking different, which is the road to innovation, has become a sure bet to let go. Sony? Make. Shit!
Sony’s development slate has been a total disaster. Pan Am. Charlie’s Angeles. The totally forgettable unforgettable. TV sales are down!? That’s bad news for TV especially with Apples 52 inch I pad loaded with Siri and all kinda of other stunning Apps. Sony is suffering from the same disease that all the networks are suffering from. The model is broken especially in the development deparents. Content creators and their so called studio partner hve never been in such a flux as they are right now. Sony is terrified of its own shadow. They second guess what the market place wants instead of just being original and brave. I’m sure they are lookIng at next years season thinking it wil change, but change doesn’t come from buying a whole crap load of comidies. The comedy ship has saled on a ship called modern family. Some say it’s a syclical business. Rubbish. Audiences don’t decide this year it’s comedy. We like what is good. What is brave. What is original. Not copies of what was. Original story telling told by the story tellers unguided by fear lead executives.
Sony needs to wake up real soon before someone like Les Moonvess realizes his dream when he purchases Sony Studios. And don’t think there is a conflict with Viacom. There isn’t. There shares an forecast for next year is bleak. Buying Sony Studios is one way to help fix all the leaks.
Last year Sony realized it had to lean on its TV business to help counter balance its losses in the film side. Woops!!!
Oh!! I hear Sony studios are sorting out their plumbing issues!! Good luck with that!
The simple fact of the matter is there is no reason for Sony to own a film + TV division anymore. It’s all very well them wanting to sell content to people straight through their Sony TV sets but what is the point of Sony owning such a large media division themselves?
Out of the top 20 films at the US box office last year how many were made by Sony? One. The Smurfs and even that was number 19 out of 20. And how many Sony TV shows feature in the top ten most watched TV shows in US broadcast rankings? None. Wheel Of Fortune is still doing great business in syndication but who wants to buy/stream eps of that on their phone?
I think Sony selling various media straight to the consumer through their Sony made TVs, Walkmans, phones, consoles etc is a great idea but unless they are exclusively selling Sony films and TV shows (which would be idiotic in the extreme) then what’s the point of them owing a studio?
I have a genuine soft spot for the ‘torch lady’ (I prefer ‘iron lady’ myself) of Columbia Pictures and I certainly don’t want to see people loose their jobs but I think that Sony must have a very honest conversation with themselves in the immediate future.
Given Sony’s precarious financial position they should start to give serious thought to cashing out all or part of their media holdings. They have a stronger slate this year than 2011 so perhaps this year is as good a time as any to bail out.
I know SONY like their various media divisions and wear them like a badge of honor but they need to make a tough decision. They can no longer be the company that is all things to all people.
Sony Pictures is list #1 on list of 10 Brands that may be extinct in a year according to Huffpost 7 months ago. $2B loss and 85% in net profit loss for the film division. Looks accurate so far.
This article and the following comments make me sad. I have worked at Paramount, Sony and Fox during my time as a very senior EA; I’ve worked for a variety of very high-level execs. I LOVED my time at Sony last year. I was extremely happy there and I felt that in contrast to the other places I’ve worked that SONY had far less of a toxic vibe. Most people I have spoken to that worked at Sony also agreed that it was kinder and gentler than the other studios. I hope they are able to turn things around. I’d be happy to work there again.
Sony’s demise is inevitable they ate no longer the 70′s and 80′s powerhouse.
Things started going downhill in their electronics platform in the 90′s with the failed
Dat and mini disc formats.
Closing almost all of their acquired The Sony Store’s in Canada due to incompetent leadership
At corporate headquarters in Markham Ontario. They decided to put free standing and mini mall
Stores in large shopping centers where square footage is premium.
Now remaining token stores have staff and management that are poorly trained
And border on inept, just young children making minimum wage.
This example carries through all the way to Tokyo, they lack innovation
And have ceased to influence market with new trends, products and above all
Quality throughout all divisions.
I’ve seen first hand how this terrific company has become a mere shadow of its
Former self and now is pressuring all their divisions to produce, unfortunately lacking
An understanding of today’s market and delivering an inferior customer experience.
Within 2 to 3 years Sony will be less than a third of the company it was.
But this is much deserved for it’s leadership. Employing the wrong people
In wrong positions.
A complete restructuring with market specialists that can draw on their past yet at the same
Time have a clear vision of the future.
My services would cost them dearly.
Completely agree with Sony’s inevitable demise, the quality of their electronics even in their elevated standard series, televisions, which may I remind you wasn’t great in the CRT era with each set of the same batch had a different picture and inherent flaws.
But in the same spectrum Panasonic has dumped technics, pioneer makes primarily receivers and their high end line consists of the class d amp, which they sell as being a green product, but is dirt cheap to make, sacrificing all sound quality.
Back to Sony, this once forward thinking and innovative company started its downward spiral in the late 80s and 90s, there is no turning back, with brand loyaly gone to the wayside they shall reap what they have sown.
Poor quality LCD and led tv’s with lines and all kinds of issues due to the panels it is time for their downfall.
Completely agree with Sony’s inevitable demise, the quality of their electronics even in their elevated standard series, televisions, which may I remind you wasn’t great in the CRT era with each set of the same batch had a different picture and inherent flaws.
But in the same spectrum Panasonic has dumped technics, pioneer makes primarily receivers and their high end line consists of the class d amp, which they sell as being a green product, but is dirt cheap to make, sacrificing all sound quality.
Back to Sony, this once forward thinking and innovative company started its downward spiral in the late 80s and 90s, there is no turning back, with brand loyaly gone to the wayside they shall reap what they have sown.
Poor quality LCD and led tv’s with lines and all kinds of issues due to the panels it is time for their downfall.
Sony is a good company but, they rise ti prices also like nikon and canon on DSLR. ((((