Sony posted a record net loss of $5.74 billion for the fiscal year 2011. But the Japanese consumer electronics company said that it expects a return of profit this year as it cuts losses on its TV business, which has been a bottomless pit in recent years. In case you didn’t know, Sony’s shares are valued at under $15.5 billion, and it slipped to a quarter century low this week. With Kazuo Hirai as its new CEO, Sony is slashing costs and jobs in a bid to turn things around, particularly its struggling TV unit. Sony is apparently considering partnerships to help the company compete better in the TV industry. But more than that, Kazuo Hirai is looking to cameras, gaming and smartphones as an avenue to spur growth. With high hopes, Sony is expecting its operating profit to reach 180 billion yen this year until March of next year.
Sony is already expecting liquid crystal TVs sales to fall 11 percent and its PlayStation games console to slip by 11 percent. But the company forecasts the sales of its new Vita handheld games console to reach 1.8 million this year (small consolation). Sony will cut 10,000 jobs and will take a 75 billion yen restructuring charge this business as well . In spite of the big loss, Sony remains undeterred, as it has always been for more than 60 years. Sony CEO Kazuo Hirai has plotted a new course for the company, with a target of 8.5 trillion yen or $106.85 billion in two years, with an operating margin of more than 5 percent. “This is our only chance to change,” Hirai said.
What do you think of Sony’s future, and what should they do in your opinion? What products do you want to see from them?