Sony Posts $390M Loss as Bravia TV and PlayStation Sales Slump
According to Bloomberg, today Sony Corporation has reported a second straight quarterly loss as the stronger yen pushed the company further behind Samsung Electronics Company in television sales, and the global recession drove down demand for videogame machines.
The net loss was 37.1 billion yen ($390 million) in the quarter ended June 30, compared with profit of 35 billion yen a year earlier.
To quote: The result beat estimates after Chief Executive Officer Howard Stringer cut jobs and shut factories to revive a company that's lost its lead to Samsung in TVs, Nintendo Co. in game players and Apple Inc. in portable media players.
Pressure is building for Stringer to prove he can increase Sony's sales, not just reduce expenses, by slashing jobs and suppliers, according to investors such as Yasuhiko Hirakawa.
"Cost cutting and reshuffling of management may help mend unprofitable businesses but they won't make Sony competitive against Samsung and other rivals," said Hirakawa, a Tokyo-based fund manager at DIAM Co., which oversees $80 billion in assets.
"The brand is still highly regarded but that won't last forever."