Sony CEO and President Kaz Hirai is prepared to take a 50% pay cut due to the declining profits the company has made over the years.
This comes from a report by the Wall Street Journal. Some other high level executives will also be willing to get pay cuts as well as a sign of solidarity. Sony as a company has been struggling reporting a loss for the fourth time in just five years.
The PlayStation brand is still going strong and is Sony’s main focus at the moment. The PS4 is now the best selling new generation console. Sony hopes to sell at least 20 million PS4 consoles by the 2014 fiscal year.
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May 13, 2014 at 3:20 AMNot exactly the greatest thing to hear in terms of Sony’s financials, clearly something is wrong if they need to penny pinch the execs. But I will say this, why not for everyone? Do people really need millions in wages? This world truly does need a maximum wage, you couldn’t possibly need millions of dollars every year. Take the pay cut, and if you ever get back on track, Sony, stick with the cut, it looks progressive.
lol
May 13, 2014 at 3:22 AMSony is selling or splitting off their lossy businesses (Vaio, TVs) and focusing on their profitable divisions. This means they’ll soon cut their losses and start turning a profit. You should be worried if Sony WASN’T cutting those losing divisions, but they’re making the right business decisions. They won’t ever be an empire again but they aren’t going under.
The gaming division and first party studios are well funded and making a profit. During the quarter ending 31st December 2013 the Game business made a profit of $172m off the back of an impressive 64.6 per cent rise in sales year on year. Sony is in for a year or two of losses and restructuring, then provided their profitable divisions stay profitable, they’ll be on solid ground.
Sony is still worth 18.5 billion. They just aren’t bringing in enough revenue or profits to bring that number up, and for a time, and probably for a few quarters here or there for the next few years, they might lose money. They also obviously have working capital, because they have games in development right now, and are able to market their newest system and do what they have to do to sell their products. If Sony were on the brink of bankruptcy, we wouldn’t be seeing AAA game announcements with budgets ranging from $50-100 million dollars. If they were on the brink of bankruptcy, they wouldn’t be buying Gaikai, or investing in new tech such as Morpheus or the PS4. PS4 will make a net profit, and Sony won’t go bankrupt.
Sony Game, Financial Services, Devices, Music, Mobile Products & Communications, and Pictures are all profitable divisions. They aren’t going anywhere, sorry.
Sony’s market cap is 18.65 billion as of today (2014).
Market cap in 2013 was 17.6 billion it has gone up since then.
Sony is ranked #80 in world as the most valuable brand 2013.
Sony is ranked #506 in the global 2000
#87 in Sales
#171 in Assets
#547 in Market value
78.52 billion dollars in sales in 2013