Sony's Turnaround Not as Bright as Thought - The UpStream

Sony's Turnaround Not as Bright as Thought

posted Saturday Nov 2, 2013 by Scott Ertz

Sony's Turnaround Not as Bright as Thought

While Kaz Hirai might be certain of his revival plan, the numbers are not looking to be in his favor. After a rebound last quarter, Sony is back in its comfort zone, having lost nearly $200 million this quarter.

Sony has attributed much of this loss to the abysmal failure that was White House Down. Compare this quarter with its equivalent from last year, which included The Amazing Spider-Man and you can understand, and should expect, a poor quarter this year. One exceptional performance followed by one exceptionally dismal performance can be the difference between a stock rise or fall.

Clearly, this quarter's results will re-open discussions within the corporation about the possibility of spinning off the media division. Recently, Sony publicly stated that they had no interest in the proposal, yet still blamed the division for the poor quarter.

Shortly before rejecting the proposal, Hirai said that he believed the consumer electronics division was the biggest problem, not the media division. It is an interesting thing to say in public before blaming the media division for a bad quarter and knowing the PlayStation division has been a financial black hole for them.

So, will Sony be able to pull off their turnaround plan, or are they so disconnected from the reality of the situation that they will chase profits in divisions that don't matter? Let us know your thoughts in the comments below.

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