Report: Sony’s Entertainment Division Headed For $100 Million In Cuts
Just days after the one million unit launch of the PlayStation 4, reports are surfacing that Sony is looking to trim back the entertainment division. Sony CEO Kazuo Hirai will be in California later this week to discuss the changes that will likely include job losses.
The news comes by way of Bloomberg, which suggests that Sony has hired Bain & Company to identify and execute the cutbacks. Sony is in danger of having its credit rating dropped to “junk” status following second quarter results of ¥19.3 billion ($192.6 million) net loss.
We spoke with Sony Computer Entertainment CEO Andrew House last week about the PlayStation 4. During our conversation, House reiterated his projection of five million PlayStation 4 units sold worldwide by the end of the fiscal year (March 31, 2014).
Sony has gotten a lot of traction very quickly with the PlayStation 4. Whether the sell-through of one million units on the first day will have an impact on the severity of cuts is something we won’t have a better understanding of until later this week. Overall, it’s troubling to be talking about financial challenges so soon after a successful launch, but it’s critical to remember that the financial trouble is reflective of more than the PlayStation business.