Sony's new CEO admits it could get into "serious trouble"

Sony's newly named CEO Kazuo Hirai doesn't officially take over the big chair at the Japanese electronics and media company until April 1. But Hirai isn't shy about talking about how the company needs to do something in order to stop the financial issues that have hit Sony in the past few years.

Hirai, who will take over from the current CEO Sir Howard Stringer, said in a new interview with The Wall Street Journal that he sees a time where the company could be in even worse shape if things don't change. He states:

We really need to buckle down and be realistic I don't think everybody is on board, but I think people are coming around to the idea that if we don't turn this around, we could be sitting in some serious trouble.

Hirai says he wants to cut some of the company's costs along with revamping Sony's overall structure. He believes that the previous structure has prevented Sony from launching new and innovative products.

The article points out that Hirai made a number of changes while he was in charge of Sony's Playstation business. The changes, which included swaping the plastic PS3 logo on the console to a painted version, turned the Playstation division into a profitable business after the first year of the Playstation 3 launch, when the division lost $2 billion.

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23 Comments

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I think that data security fail has set them back at least 10 years. I was a huge Sony supporter but after that incident I doubt I will ever buy a product from them again. It wasn't just that they lost our data but also how long it took them to tell us. Worst experience I have ever had with a company, still dealing with the fallout.

Now if only someone would do the same to RCA and GE. Remember waaaaay back when - RCA/Zenith/GE actually made good products?

Jaybonaut said,
Now if only someone would do the same to RCA and GE. Remember waaaaay back when - RCA/Zenith/GE actually made good products?

Those companies don't really exist anymore, except for the name. They were all bought out by foreign companies long ago. It's sort of like how Atari is still around, but it's not really Atari.

Hey Sony, you decided it to be necessary to ROOTKIT my audio CDs. I haven't forgotten and I haven't purchased a Sony product since 2006. F off.

jmc15john said,
Well since I don't think bluray is going anywhere anytime soon I think Sony will make due.

Sony doesn't own Blu-Ray.

Sony has become too big and bloated, same thing that happened to General Motors among others. They should focus on their core products and provide better integration among their technologies.

helios01 said,
Sony has become too big and bloated, same thing that happened to General Motors among others. They should focus on their core products and provide better integration among their technologies.

They should spin off their media business and just focus on the technology...

I read it like this: "Swapping the plastic PS3 logo on the console to a painted version turned the Playstation division into a profitable business after the first year of the Playstation 3 launch, when the division lost $2 billion."

"swaping the plastic PS3 logo on the console to a painted version"
That's some serious cost cutting right there!!!
LOL.
Kaz is an out of touch moron. The reason that Sony is in trouble is because they continuously make absolutely stupid decisions (ie proprietary everything, vastly overpriced hardware, etc).

ahhell said,
"swaping the plastic PS3 logo on the console to a painted version"
That's some serious cost cutting right there!!!

i dont know if you are just ignorant or not but a simple idea like that could save money for a company especially when PS3 are selling in millions. that was just not the only change.

ahhell said,
"swaping the plastic PS3 logo on the console to a painted version"
That's some serious cost cutting right there!!!
LOL.
Kaz is an out of touch moron. The reason that Sony is in trouble is because they continuously make absolutely stupid decisions (ie proprietary everything, vastly overpriced hardware, etc).

ye overpriced hardware, you know they sold the playstations at a loss right?
that it took them to the era of PS3 to even make a profit on the whole playstation project?
and you also know they spend billions of euros in research and development, and they have every right to make it proprietary ?

Shadowzz said,

ye overpriced hardware, you know they sold the playstations at a loss right?
that it took them to the era of PS3 to even make a profit on the whole playstation project?
and you also know they spend billions of euros in research and development, and they have every right to make it proprietary ?

So? Microsoft started at a loss but quickly moved to profit, it's their own fault for using poor innovations and ****ty hardware like overpriced nvidia.

ahhell said,
"swaping the plastic PS3 logo on the console to a painted version"
That's some serious cost cutting right there!!!
LOL.
Kaz is an out of touch moron. The reason that Sony is in trouble is because they continuously make absolutely stupid decisions (ie proprietary everything, vastly overpriced hardware, etc).

Are you absolutely insane or just spouting nonsense?

If you knew ANYTHING about what you were talking about, you'd realise Ken Kuturagi was in charge of hardware at the time of the PS3 R&D and massively overspent, Hirai on the other hand was in charge of the software division. When promoted to the head of the PS division, he brought along many changes, such as the ones stated above. Even saving a mere $3 on each PS3 sold is an absolutely whopping $42.3 million dollars saved according to 2011 YTD sales? Given 2011 is actually weaker then 2010 in sales, the amount of money saved is through the roof just thanks to nearly common sense cut-costing measures.

Then he was promoted to head of SCEA at a time when, gee, have a look, Sony started to turn their ship around into profitability land and the PS3 was having the best success it has EVER had (this was 2009-2011 area).

So, please enlighten me, how Hirai is an old fool who's out of touch and doesn't know how to turn **** around for the better? Go read the thread in Sony Console in the Gamer's Hangout about Hirai's 4-step plan on how to turn Sony around for the better, and then come back to me and say he's out of touch.

Thanks x

manosdoc said,
plz sony, die already.

Actually, it's about time somebody took the company by the rains and have the ****s to stand up and say. If we don't pull our socks up we're in s*** street

PeterTHX said,

You sound like someone who thinks their Westinghouse LCD is high performance/quality.

Or their Sylvania stereo is epic lol