Posted by anthony on 23 September 2005 - 15:33 · 33 comments & 4455 views
Sony’s new chief-executive, Howard Stringer, has announced that 10,000 jobs are being cut in a 2 billion dollar restructuring plan. In the past years Sony’s electronics haven’t faired very well.

Sony has always been a pioneer in electronics but in recent years has taken some stiff competition from Sharp and Panasonic in home theater electronics sales. Sony is also having a hard time competing with the iPod and the iTunes Music Store, which has recently become a huge competitor in Japan.

The restructuring, to be put in place by the end of fiscal 2007, would end in a reduction of 4,000 workers in Japan and 6,000 elsewhere, while factories would be cut from the present 65 to 54, company officials said.

Over the last few years, Sony’s stock has lost two-thirds of its value.

View: Washington Post Article
View: Sony


Japanese software sales for September 12 - September 18:

Platform - Title - Publisher - This week's sales (Total sales) - Weeks on sale
  • 1. PS2 - Shin Sanghoku Musou 4 Moshouden (Dynasty Warriors 5: Xtreme Legends) (Koei) - 203,000 (NEW)
  • 2. GBA - Famicom Mini: Super Mario Brothers (re-release) (Nintendo) - 187,000 (NEW)
  • 3. NDS - Tamagotchi no PuchiPuchi Omisecchi - Bandai - 150,000 (NEW)
  • 4. PSP - World Soccer Winning Eleven 9 (Konami) - 107,000 (NEW)
  • 5. GBA - Super Robot Wars J (Banpresto) - 95,000 (NEW)
  • 6. NDS - Gyakuten Saiban (Phoenix Wright: Ace Attorney) (Capcom) - 65,000 (NEW)
  • 7. GBA - Dr. Mario/Panel de Pon (Dr. Mario Puzzle League) (Nintendo) - 53,000 (NEW)
  • 8. NDS - Nou wo Kitaeru Otona no DS Training (Brain Training for Adults) - 37,000 (552,000)
  • 9. GBA - Mario Tennis Advance (Mario Tennis: Power Tour) (Nintendo) - 34,000 (NEW)
  • 10. NDS - Yawaraka Atama Juku (Brain Training for Kids) (Nintendo) - 24,000 (491,000)
Japanese hardware sales for September 12 - September 18:
  • GBM 170,306
  • DS 72,167
  • PSP 70,152
  • PS2 24,396
  • GBASP 11,147
  • GC 1,882
  • GBA 624
  • Xbox 109
News source: Hardware: Games Are Fun



There are 33 additional comments
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(2 replies) Quote this comment Reply to this comment #1 Posted by Rapier on 23 Sep 2005 - 15:41
Sad that they are having such a hard time..they're a good company..
Quote this comment #1.1 Posted by shao on 23 Sep 2005 - 22:25
the same sony that everyone's talking about, or a different one?

the first thing that springs to mind is sony should start caring more about the products that they make, and the after sales customer care they provide. Having entire ranges of consumer electronics goods seemingly have built in self destruct dates, and then telling your customers to go shaft themselves is not good practice. look after your customers and they will look after your bottom line.
Quote this comment #1.2 Posted by mealbundy on 23 Sep 2005 - 23:37
HAHA! Sony Baloney is finally had it. Their crap service and very very expensive proprietary formats made me always look elswhere. Thank god for HD-DVD. Who the hell would wanna work for a crap company like that anywayz. The royalties on their media and products made them very greedy pigs.

"Sony is also having a hard time competing with the iPod"

Yeah, because the mp3 format is used everywhere. duh.

And thats not nearly enough payback for destroying the Aiwa brand.
Quote this comment Reply to this comment #2 Posted by chrischua83 on 23 Sep 2005 - 15:53
Oh.. pity Sony.
My favourite brand of all time!

But at the other point of view, it's good for Sony itself to cut off the expenses, so they can concentrate more into some of their product to make it better and provide more compability.
Quote this comment Reply to this comment #3 Posted by TazB on 23 Sep 2005 - 15:54
Thats sucks. Sony is the originals
Quote this comment Reply to this comment #4 Posted by Vandil on 23 Sep 2005 - 16:13
Hopefully the 10,000 people are the people who made the ATRAC music file format. WTH were they thinking?
(2 replies) Quote this comment Reply to this comment #5 Posted by S7R1K3R on 23 Sep 2005 - 16:17
no the sony u see now is not the same as it was in the early 90s. people should realize that the quality of their products are garbage now. anyway the founder and ceo died in 99 and since then the execs who have been running it ran it into the ground. sony created the walkman and now apple owns it with the ipod. its pretty sad to see something like this. also if the ps3 fails which i doubt since there are fanboys then sony is no more. they are already more than 60 billion in debt. and this is their last chance.
Quote this comment #5.1 Posted by AJCrowley Esq on 23 Sep 2005 - 20:05
Yes, Apple did trounce Sony's 20 year old portable cassette player with their iPod, thanks to good marketing and a visually appealing product. However, Sony's mp3 players blow the pants off the iPod line, if only their marketing department was as talented...
Quote this comment #5.2 Posted by shao on 23 Sep 2005 - 22:26
unfortunately, there are numerous other media jukeboxes which blow the pants of both sony and apple. there was a time when sony had the portable music market to itself..... in the early 80s. those times have long gone and the walkman brand don't mean **** these days.
(1 reply) Quote this comment Reply to this comment #6 Posted by macrosslover on 23 Sep 2005 - 16:25
i thought it was taboo to layoff people in Japan and it was something that just wasn't done. hmm guess I haven't been keeping up with the times. I thought that was one main reason they are/were still in the recession they were in, they just refuse to dissolve old debt and release employees to restructure the company like this.
Quote this comment #6.1 Posted by shao on 23 Sep 2005 - 22:28
note, the guy incharge isn't japanese any more. he's there to turn the company around, and if that means cutting the fat in japan that's what he'll do.
Quote this comment Reply to this comment #7 Posted by kitchenutensils on 23 Sep 2005 - 16:39
remove ATRAC 3 and everything possibly bad about sony is removed frm my mind
(1 reply) Quote this comment Reply to this comment #8 Posted by majortom1981 on 23 Sep 2005 - 16:41
Sony is in trouble. Sony spent a lot of money on the cell processor. Unless they sell millions of ps3's to get that money back they are in trouble. There is no way the cell will sell in pc's . I wouldnt drop everything i know about intel and amd proccessors and the x86 architecture to develop for the cell .
Quote this comment #8.1 Posted by machorro on 23 Sep 2005 - 19:06
but they can sell them in the Server world

btw how much did it cost to develop the cell processor?
(1 reply) Quote this comment Reply to this comment #9 Posted by nookadum on 23 Sep 2005 - 17:30
I do agree that the latest offerings that Sony's been creating have been crap. (especially since now most of their products, if not all, are now made in China ) The later models of the PS2, their new widescreen Wega HD-TVs, their new mini-component systems, some forms of the PSP (especially the early US versions), and [sadly] now their speaker systems have all gone to crap.

Since Akio died, their new executives took advantage of this and screwed them over. It's a shame, their products (before 1999) were top notch and stable, especially their TV sets and the PS1.
Quote this comment #9.1 Posted by shao on 23 Sep 2005 - 22:30
i think you'd be surprised at just how much non-sony stuff that isn't crap is also built in china. the quality of sony's products has nothing to do with where they're built, but about the quality of the components, and quality of the build - all done to a budget where budgets have been cut at the expense of quality.
Quote this comment Reply to this comment #10 Posted by Ala_Bama_Man on 23 Sep 2005 - 18:15
Let's they all win 20 000$ / year x 10 000 = 200 000 000$ ... Then Watson, what's the reason for Sony to do that?
Quote this comment Reply to this comment #11 Posted by BigBoy on 23 Sep 2005 - 18:35
Sony product quality has been going down recently. Witness the Wega TV - which I had to had replaced 3 (!!) times as it developed dark spots near the edge of the screen...

Rest assured - I got a different TV after that, not Sony...
Quote this comment Reply to this comment #12 Posted by yukycg on 23 Sep 2005 - 18:44
Sony is falling behind in almost every aspect of consumer's electronics. Things like ATRAC, UMD, Duo Pro and even cell are crap. PS3 can fails if cell can't produce enough to meet the demand. With the steep price of ps3, and the size of ps3 already shift my decision toward xbox 360.
Quote this comment Reply to this comment #13 Posted by DJ Specs on 23 Sep 2005 - 18:48
Not suprising, since Sony products have continually degraded over the years. Most of their products are terrible, and in need of repair early in their life. You can read about it at the Consumer Affairs & Consumer Reports articles & reports. Sony has one thing going.. the look of their product. They always had the nicest looking products, but whats a nice looking product if the insides dont work. Highly unreliable, and overpriced. Sony went down the tube when manufacturing stopped in Japan ages ago.
Quote this comment Reply to this comment #14 Posted by warwagon on 24 Sep 2005 - 01:18
hopefully its the Portable music player department
Quote this comment Reply to this comment #15 Posted by rIaHc3 on 24 Sep 2005 - 01:36
The only thing that can save Sony is the PS3...
Quote this comment Reply to this comment #16 Posted by Sticktron on 24 Sep 2005 - 02:14
I like Sony. They are an interesting company, in that of all the consumer brands, they were quite innovative and you could pretty well count on a Sony product being good (again, for consumer grade stuff).

These days however, with the net and all, people are becoming more educated consumers and looking for more than just a "brand name"... they want the best components they can buy for their money, and Sony, while (usually) reliable, just doesn't represent the best quality and technology in their price range. Choices are more obvious, and people are choosing to put their money elsewhere.
Quote this comment Reply to this comment #17 Posted by supersaiyanjericho on 24 Sep 2005 - 02:22
I remembered I had a friend who laughed at me for buying a Panasonic TV and a JVC VCR and he told me only buys electronics from Sony. Now, look how the mighty have fallen. lol. It's amusing to know there are people out there who would buy a Sony TV and match it with a Sony VCR, a Sony DVD player, a Sony reciever and a set of Sony speakers and all that because of the brand name.
Quote this comment Reply to this comment #18 Posted by warr on 24 Sep 2005 - 03:16
If you can't manage the company well, then you have to suffer from renevues, profits and market share. No matter how good they were, now they aren't that good any more: product design slipped, products aren't up to date, yet their price is still sky high. Look at what Samsung did in the past 3 years. Now samsung's revenue and profits are much higher than Sony's, so Sony is dubbed as No. 2 electronics. no more No 1. It's time for them to take a bite, and lower their price looking at their competitors.
(2 replies) Quote this comment Reply to this comment #19 Posted by j0j081 on 24 Sep 2005 - 03:20
I think Samsung is doing a lot better now aren't they? They went from crap quality to some pretty nice stuff from what I hear.
Quote this comment #19.1 Posted by ienhz on 24 Sep 2005 - 04:22
Yup. I think Samsung might be more than capable enough to take over Sony's spot. Shame really though, I really liked a lot of Sony's product designs like the TR series laptops, T series cameras, and WEGA TVs. Still, Samsung isn't too bad. The Samsung D500 phone is beautiful.
Quote this comment #19.2 Posted by ALUOp on 24 Sep 2005 - 09:20
Samsung even says they are now what Sony once was.
(2 replies) Quote this comment Reply to this comment #20 Posted by realmccoy on 24 Sep 2005 - 04:47
Maybe they should have not hired the CEO and saved millions. Any fool can lay off people to save money, he should came idea's to keep people and advance the product's.

Quote this comment #20.1 Posted by ALUOp on 24 Sep 2005 - 09:22
You're right.
Crappy CEO is the one that needs to be fired not the worker.
Quote this comment #20.2 Posted by warr on 24 Sep 2005 - 16:50
any crappy manager knows the first step is to fire ppl.
Quote this comment Reply to this comment #21 Posted by Miran on 24 Sep 2005 - 05:03
Good riddance.
Quote this comment Reply to this comment #22 Posted by SaLiVa on 24 Sep 2005 - 11:08
I don't know. I lost my aspiration to buy products from Sony.
They've lost their brand name really. Unknown products are getting a brand name for themselves, Sennheiser is appearing to become a sought after product, Samsung is converting to mass production to overpricing with brand name and product quality (What Sony did recently), Hitachi's Plasma screen is taking a good stand, but Sony... Im sorry to say Sony is only relying on long dead screens like Wega, trying to revolutionise their console with very tough competition from Microsoft, and Plasma screens are near non existant. Their media support just doesn't follow standards, eversince the MD Player, they've seemed to go their own way with concerns of standards. Wrong decisions, and many just not innovative.
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