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Kaz Hirai Reveals Sony's New Vision, Announces 10,000 Layoffs

Jonathan Lester
Financials, Sony

Kaz Hirai Reveals Sony's New Vision, Announces 10,000 Layoffs

Plans To Step Up PSN Games & Subscription Services

Sony currently stands to make an annual loss of four billion Pounds this year (mainly down to a whopping tax bill), and Kaz Hirai is having none of it. The new Sony CEO plans to streamline the company and focus on three main profitable divisions - digital imaging, games and mobile - on top of sadly confirming 10,000 layoffs throughout the corporation.

In a statement made earlier today, Hirai identified three main targets as being the most profitable, and hence the highest priority going forward. Gaming is definitely one of them.

Sony is positioning digital imaging, game and mobile as the three main focus areas of its electronics business and plans to concentrate investment and technology development resources in these areas," read a Sony statement issued this morning.

By growing these three businesses, Sony aims to generate approximately 70 per cent of total sales and 85 per cent of operating income for the entire electronics business from these categories by FY14 [2013/2014].

Focusing on games specificially, Hirai promises to bolster the number of services, games and subscriptions available through PSN while continually supporting the PS3 and Vita. Sony will also look to increase the number of PlayStation Suite-compatible devices (tablets and smartphones) alongside improving the range of titles available. The games division alone is forecast to make a cool £7.74 billion by FY2014.

In the game business, Sony continues to deliver exhilarating entertainment experiences through PlayStation 3, PlayStation Vita, and its unique combination of hardware, software, PlayStation Network (PSN) and range of accessories and peripherals," declared Sony.

These will form the foundations on which Sony will target further sales and profit expansion in the game business.

The Company also aims to increase sales by enriching its catalogue of downloadable game titles and subscription services available through the PSN platform, and also by expanding the line-up of PlayStation Suite compatible devices and content.

Sadly, an aggressive new reorganisation and redistribution of resources will result in over 10,000 layoffs this year.

In addition to this business portfolio realignment, as Sony moves to strengthen its core businesses and shift resources to growth areas, it will also restructure its headquarters, subsidiaries and sales company organisations in order to further enhance operational efficiencies," outlined Sony.

As a result of these measures, Sony estimates that the headcount across the entire Sony Group will be reduced by approximately 10,000 in FY12.

We wish the very best to those affected.

Add a comment 1 comment
Zeipher  Apr. 12, 2012 at 12:56

It's a crazy thought, but maybe they should have a reasonable RRP for digital games. £49.99 for Mass Effect 3? Why? There aren't manufacturing and distribution costs on the same scale as needed for a physical copy, so I find it simply ridiculous.

If games came out online as £24.99, then I wouldn't hesitate on a day one purchase, but look at the PS Vita prices! Isn't Uncharted £39.99? Silly.

Best wishes to those who may lose their jobs, but hopefully something good will come from this!


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