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Sony revenues swoop down, Hirai sees salvation in the user experience, not hardware

Posted: , by Victor H.

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Sony revenues swoop down, Hirai sees salvation in the user experience, not hardware
Sony posted disappointing results for its fiscal Q3 2011 today with revenues swooping down by nearly $2 billion (159 billion yen), pushing the company’s results to worse than expected. Sony blamed it on the Thai floods, the competition, and the strong yen with the company’s LCD TVs and PlayStation 3 game console performing poorly.

“If we don’t turn this around, we could be sitting in some serious trouble,” Sony’s new CEO Kaz Hirai warned.

Hirai detailed us on its plan to save the company and one thing seems to stick out - the company is planning to focus on the user experience, not the hardware. 

Here are the rest of the highlights of his plan:

1. Re-enforcing Sony's core businesses,
2. Pulling together Sony's TV business,
3. Transforming Sony's business portfolio,
4. Accelerating Innovation.

“We really need to buckle down and be realistic,” Hirai said for the WSJ. “I don’t think everybody is on board, but I think people are coming around to the idea.”

The new chief executive faces some serious challenges in not just one, but many divisions. At the same time, the company is trying to persuade customers to buy not one, but four screens. Will it succeed? At least, Hirai is realistic and straightforward about the state of the company. Here’s how he summarizes it:

“I thought turning around the PlayStation business was going to be the toughest challenge of my career, but I guess not. It’s one issue after another. I feel like ‘Holy s—, now what?”

source: Sony, WSJ

15 Comments
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posted on 02 Feb 2012, 09:45 1

1. bloodline (Posts: 691; Member since: 01 Dec 2011)


IMO I cant see sony lasting another 10 years

Xbox has surpassed playstation.

In the smartphone market they cannot compete against samsung, HTC and Motorola

Tv's panasonic own that marketing - (could be wrong)

they are just to behind now.

posted on 02 Feb 2012, 10:51 3

4. ngo2dd (Posts: 781; Member since: 08 Jul 2011)


X-box has surpassed them by 3.1 million with a one year head start.
TV is not panasonic, they suck, The TV problem is that many of us don't but the top of the line TV and that is sony market.

posted on 02 Feb 2012, 14:02 2

8. BioTek (Posts: 53; Member since: 23 Jan 2012)


The X-Box has barely surpassed the Playstation nowadays.

The Sony Xperia Ion and S are great competition for HTC, Motorola, and Samsung phones.

Samsung and Sony own the TV market.

posted on 02 Feb 2012, 10:13 3

2. buggerrer (Posts: 285; Member since: 21 Sep 2011)


I hope you go bankrupt .. you !#$% !!

posted on 02 Feb 2012, 10:47

3. Fallout09 (Posts: 413; Member since: 17 Oct 2011)


Man, just yesterday I was being told that I was stupid and didnt know what I was talking about when I said that Sony was yesterdays news and has fallen off in the last 5 years. I guess the rest of the world agrees with me based on the revenue drop of $2 billion US.

posted on 02 Feb 2012, 11:11 5

5. darac (Posts: 2156; Member since: 17 Oct 2011)


"holy s**t, now what?"

this new CEO sounds promising :D

posted on 02 Feb 2012, 11:27

6. Fallout09 (Posts: 413; Member since: 17 Oct 2011)


Nope, Kaz is a total d-bag. 100% company man, if you cut he will be bleed Sony. In his PS3 days all his interviews sounded like he lived in his own little world and didn’t feel there was any competition in the market. Meanwhile back in reality, the Wii was stomping mud holes, Xbox 360 was kicking ass and PS3 was just trying to get some playing time in the game. And in my opinion, it wasn’t till Dave Reeves took over that Playstation brand that the PS3 gained some traction.

posted on 02 Feb 2012, 17:36

10. ngo2dd (Posts: 781; Member since: 08 Jul 2011)


No PlayStation wad doing bad was due to the prices. Once the prices down the system sold vary well. The American market is the only reigon that x-box sold more then the PlayStation.

posted on 02 Feb 2012, 11:43

7. jellytime (Posts: 135; Member since: 05 Dec 2011)


I have to agree with the user experience part

posted on 02 Feb 2012, 21:58

11. XiphiasGladius (Posts: 801; Member since: 21 Aug 2011)


And a better hardware will ease up that user experience part.

posted on 02 Feb 2012, 15:11 2

9. 9_HeLLs_oF_DrOid (Posts: 123; Member since: 02 Jan 2012)


C'mon Sony... I know you can pull it off. Everybody has bad times.

posted on 02 Feb 2012, 23:54

12. RamyRamz69 (Posts: 390; Member since: 12 Dec 2011)


Best of luck to Sony

posted on 03 Feb 2012, 02:28 1

13. Jericho (Posts: 302; Member since: 12 Nov 2011)


sony has the resources.but have to use it properly. Sony is that damn good

posted on 03 Feb 2012, 04:22

15. XiphiasGladius (Posts: 801; Member since: 21 Aug 2011)


Yes that's true just imagine if sony steps up their game even in the hardware department since that's the only thing why samsung sells.
I compared the Timescape UI and the TouchWhiz UI and I found that despite the latter had more customization options and so on, I still preferred the TX UI.

posted on 03 Feb 2012, 03:31 1

14. Bluesky02 (Posts: 1439; Member since: 05 Dec 2011)


Well I'm a gamer first then a smartphones fan.
I've been following the gaming news since 2005. All i can say about Sony, is that as a hardware Playstation 3 is very robust and solid. It won't break.
Software side it has great high quality exclusives like Uncharted 3, Resistance 3, God of War 3, Motorstorm Apocalypse and many others.
Now there's the problem, Playstation Network, if you compare it to Xbox Live, sony lags hell a lot.
- Most games need online pass.
- Developers really hate developing for the CELL.
- Multiplatform games suffers from poor porting. Check bayonetta.
- Most games requires mandatory installations about 45mins. Check Grand Turismo 5.
- Microsoft pays a lot for downloadable exclusives
- Most friends are online at Xbox Live
The Playstation 3 feels like Xbox first generation.
The Xbox 360 feels like PS2 generation.
Moreover Sony has been more focus with playstation division while neglecting the electronics hardware side.
Also useless lawsuites against Geohotz afterwards Anonymous PSN Attack.
So of course do expect losses.

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