Sony CEO Claims Recovery “On Track,” Banks on Playstation 3

Gaming Tech News

At an annual shareholders meeting, Sony’s first foreigner CEO, Howard Stringer, made his first appearance as CEO at an annual meeting in hopes to appease more than 7,000 investors. He claims that the company has succeeded in “cutting costs and reducing losses” in its electronics sector. Sony plans further growth through specific products including high-definition TVs, digital content, a next-gen computer chip called “cell,” and the Playstation 3 gaming system. But skeptics point to widening losses…

In the January to March quarter, Sony’s losses were $579.3 million, larger losses than the year before. Investors are doubtful that Sony can return to its glory days and aren’t necessarily trusting of the Welsh-born Stringer. Also, shares of Sony have lost close to half their value over the last five years.

Sony has had a difficult time maintaining profit because of fierce competition from companies like Samsung and Apple. Sony used to have a strong revenue stream from portable music players with its Walkman line, but Apple has quickly taken over as the definitive leader in that sector. However, Sony is banking on huge returns from its upcoming Playstation 3. The successful Playstation 2 is expected to provide a strong fan base for Sony’s next generation videogame system. But competition has increased there as well…

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