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Forums - Sony Discussion - Sony says enough is enough, to cut 5,000 jobs, split off PC, TV operations

CDiablo said:
Can someone explain to me how "spinning off" a division(tvs) will help make more profit than keeping it under one umbrella.

Probably has to do with some accounting magic.



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Jizz_Beard_thePirate said:

I am glad they got rid of their VAIO business... Their laptops are the worst, and the value for what you pay is almost Apple bad... Now, no more consumers have to deal with being ripped off from Sony's laptop division... Thank the lord!

And it was pretty clear from the years past that they are gonna axe their TV business eventually too... I think this restructuring/overhaul, while sad as many people loses their jobs, is a good step for Sony. Their brand has been way to tarnished by their shitty, overpriced, underperforming laptops and their over-priced TVs... Asus for Laptops and Samsung for TVs is the way to go imo


You are correct other than 

Lenovo is the best for laptops

 

and whoever is the cheapest for TVs.

 

There is very little difference is a Seiki 1080p LED tv and a Samsung 1080p LED tv. Generally the name brands have slightly better sound but they cost 1/2 as much if you shop around



Dell, HP and now Sony....the future doesn't look bright for the Windows platform at all



"...the best way to prepare [to be a programmer] is to write programs, and to study great programs that other people have written. In my case, I went to the garbage cans at the Computer Science Center and fished out listings of their operating system." - Bill Gates (Microsoft Corporation)

"Hey, Steve, just because you broke into Xerox's house before I did and took the TV doesn't mean I can't go in later and take the stereo." - Bill Gates (Microsoft Corporation)

Bill Gates had Mac prototypes to work from, and he was known to be obsessed with trying to make Windows as good as SAND (Steve's Amazing New Device), as a Microsoft exec named it. It was the Mac that Microsoft took for its blueprint on how to make a GUI.

 

""Windows [n.] - A thirty-two bit extension and GUI shell to a sixteen bit patch to an eight bit operating system originally coded for a four bit microprocessor and sold by a two-bit company that can't stand one bit of competition.""

Too bad. Sony makes the best consumer led tv's for gaming and image quality.
The w900a destroys the samsung f8000 for gaming and image quality.
Sony's flip line of laptops are very fairly priced and feel amazing.



vivster said:
Wow, didn't expect that. I thought the TV division would be vital to their unified content network and especially PSNow.

I'm guessing psnow will still be a service, similar to netflix.



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You only split off divisions if you are planning to sell or joint-venture them. As PC and TV divisions were reporting huge losses over the last years, this is good news for PS4 as Sony will be be able to concentrate it's efforts.



Good decision on sony. They are dealing with their loss leading divisions by taking it out of sony's financials finally leaving sony with

Music/TV/Movies: Strong profit maker, Sony is #1 in music, entertainment division usually nets sony $1 billion a year in profit.

Financials: Sony's strongest profit maker at around $1.5-2 billion a year.

Digital Imaging: Professional and Consumer products developed. Its sensors are used by other smartphone companies including apple. Its revolutionary alpha and nex line are hurting canon and nikon. Money to be made with new investment in pro medical grade equipment. I can say maybe a healthy $100-200 million a year

Games: Need I say more :p New Gen profits should be from $500 million to $1 billion a year.

Phone: It's a 60/40 sony is #3 in smartphone revenue though after apple and samsung and their xperia line are making some big gains. The z1 compact is the best compact android phone period and when it comes out will sell really strong imo. They are putting a lot of risk into it but i think smartphones will help sony's bottom line quite a bit. Its gonna be anywhere from a couple of $100 million in loss to $1 billion+ in profit depending on success/failure.

Overall Sony with all of its profitable divisions come out to making $4-5 billion in profits a year. That's a healthy company so Sony isn't going anywhere. Now all they need to do is capitalize on this opportunity.

*profit estimation are from Sony's past financials and potential future market.



theprof00 said:
vivster said:
Wow, didn't expect that. I thought the TV division would be vital to their unified content network and especially PSNow.

I'm guessing psnow will still be a service, similar to netflix.

Hell, it's probably Sony's big pitch.

 

If I were a predictions guy I would guess that Sony makes Bravia it's own company while promising exclusive integrated Sonynow to investors.

They pick up investors and use the profits from the stock sales to improve the bottom line and reinvest in the company, while throwing some into Bravia.

It would be the loeb plan in reverse... and dare i say... it's a better plan.

That way if the TV division blows up anyway, Sony's hands are clean, outside a possible PR kerfluffle.



Finally, Sony wants to become profitable again rather than continue its downward spiral to obscurity. It sucks that people are going to lose their jobs but it would be worse if Sony goes under altogether.



kirby007 said:
VXIII said:

They didn't / will not sell their TV division, they are just turning it into a subsidiary company. The Tv division will probably get its own budget , profit and financial reports.

nt entirely sure on the fiscal rules of japan but wouldn't that still mean the TV company they are setting up will this show up on the consolidated calculations?

Lafiel said:
yo_john117 said:

"Sony also said it will split its TV division off into a separate company by July 2014."

So does that mean that Sony will own the company that will be making the Vaio TVs or that they are selling them to a different company?

Vaio is their PC brand, their TV brand is Bravia and yes, that initially will be a 100% daughter of Sony

If the TV division is still losing money it will still be losing Sony money as a subsidiary vs. a division of the Sony company.

This is a step towards selling it or spinning it off via IPO, either completely are partial divestment.

They haven't finalized that part yet, but separating it into it's own corporation is the obvious step towards disposing of it.

DevilRising said:
This just underlines the fact that in spite of the Playstation brand's success, it has, surprisingly, never been a huge source of profit for Sony as a corporation.

Uh... how?  Doesn't matter how much $$$ Sony is making off of Playstation,

if TV and Computers are losing money non-stop, no reason to keep them around forever.