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Sony revises loss projection to $2.9 billion

And accelerates its restructuring programme

Sony revises loss projection to $2.9 billion
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When I was at university I had a running joke called ‘next scene,’ which worked by juxtaposing present optimism and imagined future calamity.

For example, a friend might say, “shall we risk going out without our raincoats?” and I might say, “Yes, let’s risk it.”

Next scene: the two of us drifting face down in floodwater.

The other day, in an interview with Official PlayStation Magazine, Sony President Kaz Hirai made some remarks that would have worked brilliantly with ‘next scene’.

He said, “We don't look at [Nintendo] as being competitors.”

And then he said, “There's no way that at the end of a life cycle our competition is going to have a higher install base."

And then he said, “I'd like to think that we continue official leadership in this industry."

Next scene: Sony today announced that its projected operating loss is greater than expected by a whopping $1.8 billion - more than twice the original forecast of $1.1 billion.

16,000 job cuts have already been announced, but Sony is said to be ‘accelerating’ its restructuring plan, with cuts equal to a $2.8 billion saving in the pipeline. A further 2,000 job cuts are rumoured.

It’s quite a juxtaposition, and of course terrible news for the many casualties of Sony’s predicament.

Edge.