Despite a rather successful launch of the PS4 thus far, Sony reported a second-quarter loss that led Moody’s Investors Service to warn Sony that their debt rating could become junk. Sony has to turn things around, but it seems this will include job cuts.
Bloomberg is reporting that Sony has hired Bain & Co to identify inefficiencies and cuts to save Sony $100 million. Sony CEO, Kazuo Hirai, will be hosting a conference in Culver City, California on 21 November to discuss his strategy for the entertainment division.
There has been a lot of debate over the whole “one Sony” policy under Hirai; Gavin told you a few months back about how Sony refused to split off the entertainment division, and faced a serious stock tumble. Of course, the entertainment division is more than just the PS universe. This includes all the content they own and develop, including box-office flops like After Earth and TV super stars like Breaking Bad. The cuts will probably take place across the entertainment division – it has to be done or Sony will suffer from a worthless credit rating and the corresponding toilet-paper stock value.
It may seem strange to have these huge cuts right after such a successful launch of PS4; however, it doesn’t necessarily reflect on the success of the PlayStation brand but rather it is based on the issues in the entire entertainment division. That said, I can’t help but wonder how this will affect Sony’s ability to push their brand during this crucial launch window. Also, it’s always bad news when people lose their jobs.
Last Updated: November 20, 2013
Admiral Chief Duke
November 20, 2013 at 12:37
Heh, dat header
November 20, 2013 at 12:39
You do the header yourself Zoe?