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Bloomberg: Sony's entertainment arm looking to make $100 million in cuts

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D

DaSorcerer7

Member
Bloomberg said:
Sony Pictures Said Hiring Bain for $100 Million in Cuts

Sony Corp. (6758), which meets with investors this week about improving the company’s entertainment unit performance, has hired Bain & Co. to identify $100 million in cuts, a person familiar with the situation said yesterday.

Sony Chief Executive Officer Kazuo Hirai is hosting a conference on Nov. 21 at the company’s studios in Culver City, California, to discuss his strategy for entertainment. The cuts will include job losses, said the person, who asked not to be identified because the moves haven’t been announced publicly. Sony shares rose.

Hirai is seeking to lower costs after reporting a second-quarter loss that led Moody’s Investors Service to warn Sony’s debt rating could be cut to junk. The Tokyo-based company has faced criticism over the profitability of its entertainment division, with billionaire Daniel Loeb of Third Point LLC calling for a partial sale of the business.

“The effect of Daniel Loeb is generating results,” said Mitsushige Akino, chief fund manager at Ichiyoshi Asset Management Co. in Tokyo. “However, entertainment is a growing area for Sony, and improving the business cannot be all about just cutting costs.”

Cheryl Krauss, a spokeswoman for Bain in New York, didn’t immediately return a call seeking comment.
Click to expand...
http://www.bloomberg.com/news/2013-11-18/sony-pictures-said-hiring-bain-for-100-million-in-cuts.html
 
S

Succinct Verbosity

Member
I can't imagine the issue here is with Sony's video game studious. Most of Sony's movies have been performing poorly this year and I don't see Spiderman changing their fortunes.
 
D

Diablo Rosso

Member
On one side, they had huge success with Breaking Bad and on the other, some huge Hollywood flops. I think Sony need another Spider-Man, a safe banker. Whether that's another superhero franchise or not but what's popular at this time apart from those?
 
Z

zomgbbqftw

Banned
Not fucking surprising, but this belongs in OT rather than gaming side. Entertainment is SPE and SME, not SCE. Gaming is one of the five electronics divisions.
 
T

tim.mbp

Member
UNR9JNP.jpg
 
C

Cidd

Member
Things are looking more grim for Sony each time I read one of these reports, they just can't seem to recover from past mistakes.

Kaz is trying but I don't think some divisions can't be saved at this point.
 
L

LilWayneSuckz

Member
For the love of all please stay away from cutting game studios...And fire whoever greenlit "After Earth" the M. Night Shymalan movie that should never have happened
 
C

catashtrophe

Member
What Marvel characters do Sony actually have the rights to?

Is it just spidy and what ever villians are in the spidy universe or are there any other superheroes they can use and make films about.

Comic book characters are big things they should be doing Venom Movies, Carnage movies and what ever else they can do so make money
 
N

Nightengale

Member
Playstation division is not part of the entertainment arm.

Honestly, as much as I hate to say it because it involves people losing jobs, this is a move in the right direction. Sony Pictures seriously needed a massive shake-up at the leadership and project management level.

It's insane to see the quality of the movies they released this year.
 
I

ICPEE

Member
Cidd said:
Things are looking more grim for Sony each time I read one of these reports, they just can't seem to recover from past mistakes.

Kaz is trying but I don't think some divisions can be saved at this point.
Click to expand...

I feel the same but i actually think PS4 will be a shining light for them. As long as they can keep delivering on PS4 and keep the "gamers first" message i reckon they can start building from that and move forward.

Their other divisions need a radical shakeup and need to be treated as carefully as they treat the Playstation division.
 
C

Captain Smoker

Member
ICPEE said:
I feel the same but i actually think PS4 will be a shining light for them. As long as they can keep delivering on PS4 and keep the "gamers first" message i reckon they can start building from that and move forward.

Their other divisions need a radical shakeup and need to be treated as carefully as they treat the Playstation division.
Click to expand...
Problem is that SCE isn't very efficient either, in terms of their income.
 
Z

zomgbbqftw

Banned
LilWayneSuckz said:
For the love of all please stay away from cutting game studios...And fire whoever greenlit "After Earth" the M. Night Shymalan movie that should never have happened
Click to expand...
That guy, plus whoever decided it would be a good idea to release White House Down after the knock off (Olympus Has Fallen).

AE was a shit movie all around and all studios (not just SPE) need to have a zero tolerance policy to Will Smith including his kid in his own projects. WHD was almost a buddy cop movie with the POTUS. Weird, but it would have been fine if they had released before OHF.

SPE need a hit right now and so does Will Smith. I could see Bad Boys 3 for a 2015 release without Jayden.
 
N

Nightengale

Member
Captain Smoker said:
Problem is that SCE isn't very efficient either, in terms of their income.
Click to expand...

SCE is treated like an electronics division. Low margins isn't a big deal, since it's part and parcel of being in electronics.

SCE would be a lot more troubling if it's in a business unit that prioritises high margins.
 
A

Angry Grimace

Two cannibals are eating a clown. One turns to the other and says "does something taste funny to you?"
Where's the Kaz gifs?

Oh, not gaming side.
 
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