Sony Will 'Accelerate' Cost Saving Measures

We've already heard from Japan's Nikkei Daily what Sony plans to do to cut loses. Now, let's hear from Sony.

Today Sony announced measures to improve profitability and drive growth — in short, start making money again. The three areas of focus according to the corporate giant:

• Structurally reform Sony's core electronics operations to better compete with its best in class peers in terms of speed to market and profitability.

• Continue margin improvement activities to lessen the impact of the weak economic profile of key markets.

• Accelerate the integration between products and network services by leveraging the combined strengths of Sony's electronics and computer entertainment operations.

Back in December, Sony announced a series of measure aimed at total annual savings of ¥100 billion (US$1.21 billion) by the end of fiscal March 2010.

But, the company has gone one step further and states today, "Sony intends to accelerate these actions, and in addition, implement further initiatives which are being announced today. Through these measures, together with anticipated restructuring to be achieved within the game, music and pictures businesses, and significant cost reductions in advertising expenditures, general expenses, logistics and other expenses, Sony now anticipates that it will achieve group-wide cost reductions of 250 billion yen (compared to the current fiscal year ending March 31, 2009) in the fiscal year ending March 31, 2010."

Those measures include the previously mentioned LCD TV factory closings and executive bonus waving, Sony is also stepping up an early retirement program. No further word yet on this "anticipated restructuring" with regards to its gaming division.

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Comments

    @Fostar Sixtail said: -Own up to your dive from 1st to 3rd. Stop trying to pad it with "Ten Year Lifespan."

    If you look at it from Sony's point of view, they havent exactly dived. If you compare the first two years of sales worldwide for the 360 and PS3 it might suprise you to note that the PS3 slightly outsold the 360. The biggest issue is the year gap. 360 has just over 3 years total sales while the PS3 has just over 2. Their biggest problem is getting to market later than the opposition. The perception of a sales failure is exaggerated. Sure, the 360 may yet pull away, but rate of sale since release is reasonably even for both.

    I imagine their next cost-saving measure will be the removal of the ability to play PS3 games that aren't GT5 or FFXIII. Few will notice.

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