The lights are on
While the PlayStation 4 has been a success for Sony, a broader view of the company reveals a less positive outlook. The international media and electronics company posted a nearly $1.3 billion dollar loss, is spinning off its PC business, and is refocusing its priorities.
At a shareholder meeting yesterday, investors opted to support CEO Kaz Hirai and the rest of the executive leadership once more. This comes despite deficits in six of the past seven years. The year ending March 31, 2015 is projected to result in another deficit.
Sony’s television division also lags behind competitors like Samsung, where it was once a market powerhouse. Despite these stumbles, Hirai reaffirms Sony’s commitment to entertainment. This includes gaming, which is a bright spot in an otherwise troubling fiscal period.
Our TakeDespite shareholder support of Sony’s leadership, it stands to reason it’s out of pragmatism and not loyalty. There is a recovery plan in place, layoffs and division spinoffs are happening. To make a change right now could derail execution. If things don’t start improving throughout this year and into next, don’t be surprised if investors lose patience.