Sony have reported severe losses of $1.2 billion between October and December 2011. This figure is worse than expected, and is being blamed on a strong yen, a dull economy and Thai floodings.
The company have also reported a full year operating loss. Sony have named Kazuo Hirai as the new chief executive. Hirai has a long standing, successful history with the Playstation Gaming Business, even though his team faced criticism for reacting slow with customers after network hacking last year.
Fujio Ando, Senior Managing Director at Chibagin Asset Management, Toyko said “”Companies developing gaming software are making profits, but people are not buying game hardware anymore. In an age when everyone can play games on smartphones and iPads, there is no way to boost profits without producing software.
“The results are very bad. If there is just one reason to buy, it’s the fact that they switched to a younger CEO.
“Older CEOs are not looking for change. The fact that production will recover after the Thai floods and the Japanese disaster is a given. Unfortunately, it doesn’t look like they are going to produce something new to boost earnings.”
Kitguru say: Is Hirai the new leader to revive their fortunes?