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Kaz Hirai to be on CNBC today at 3:30PM EST.

narton

Member
This is a decent summary but a couple of things are missing or incorrect.

He said with the right focus the electronics biz can be profitable. The entertainment biz is very profitable at this time. (CNBC broke Sony into three sections in its sidebar: financial services, entertainment and electronics. I personally don't know where Sony puts gaming within those last two categories.)

Also, one key thing he said about any potential spinoff was that not only that entertainment helps the bottom line, but that really no other large company in the world has both a deep content AND electronics hardware biz. Content can help drive hardware. This was a key statement to me as a gamer.

Finally - you got the part about direct reports wrong. Kaz has let go all but 2 of his direct reports in the last year since becoming CEO. In other words, he fired nearly all of his management team and installed hand-picked people as they become a more integrated and focused company.

Overall a good interview for as short as it was. He's a smart guy. I have very good vibes about the next few years for the Playstation brand.

I could only write so much on my notepad during the interview. Thanks for clarifying and filling in some of the missing pieces.
 
Also, on the Yen vs Dollar question. Part of the reason they struggle with it vs other Japanese companies is that they have a much higher fixed USD cost base (which made sense with strong Yen), but also they fixed these costs going forwards when their business had a much, much higher income level in the US so their USD income outstripped their fixed costs. Over the last three years USD revenue has decreased by around 25%. Sony are slowly becoming a non-entity in the US as their TVs are uncompetitive and they don't have a significant presence with Xperia, they only division that does significant business in the US is Cyber-Shot and Vaio. That is why it is of paramount importance that Kaz ditch this idea of not tackling the US market and get in there now. Get those USD revenues up to offset the high fixed USD costs. I think they have started already because they have come to the same realisation, but there is still a long way to go yet.
 

farisr

Member
4 months ago I never thought I'd be watching a Kaz interview and thinking about GIF possibilities throughout it.

GAF has changed me. LOL.
 

Killthee

helped a brotha out on multiple separate occasions!
He also talked at D11 today, here's the PS4 quotes:

Dean Takahashi said:
Sony CEO plays down ‘media hub’ and says PlayStation 4 is for gamers

Sony chief executive Kazuo Hirai said today that the PlayStation 4 will differ from Microsoft’s Xbox One, which is being pitched as an all-in-one entertainment box in the living room.

“I fundamentally believe that the initial market that we need to make sure we appeal to with any new platform … is really the gaming audience,” Hirai said. “They will be the supporters of your platform and they will help propel the installed base.”


He spoke at the D11 conference hosted by AllThingsD. He was joined by Jed York, the chief executive and owner of the San Francisco 49ers, and they talked about the fan experience Sony is helping to create for the 49ers’ new high-tech stadium in Santa Clara. He made the remarks in response to a question from moderator Walt Mossberg of the Wall Street Journal.

Hirai acknowledged the PS4 will have non-game applications. But Sony will not emphasize those at the outset as it did with the launch of the PlayStation 3 game console in 2006. The PS4 is coming out this fall.

He said Sony would add other entertainment apps, “But that’s after we establish the platform as a video game platform. We want to make sure that we are there for the gamers with our PS4 as well. They will go beyond this, but they’ll definitely start with gamer first.

He concluded, “For us, it’s all about the gamers.”

By contrast, Microsoft’s Xbox One unveiling had lots of apps that have nothing to do with games, from using voice commands to change TV channels to using Skype while watching shows.

Ina Fried said:
Kaz Hirai: Sony PlayStation 4 Will Be First and Foremost a Game Player

Where Microsoft has positioned the Xbox One as much as an entertainment device as game console, Sony plans to tout its PlayStation 4 as primarily a device for games.

“The most important thing we need to make sure we do at least initially is that we all agree and understand that the PS4 is a great video game console that appeals to video gamers,” Hirai said in a briefing with reporters after his onstage appearance at D: All Things Digital. “If we miss that part than I don’t think we get the initial establishment of the console.”

Hirai said that formula has worked in the past, including with the PlayStation 3.

That said, there are capabilities in the device that will make it well suited to other uses, Hirai said, without giving details.

“We take a look at this first and formest as a game console,” Hirai said. “We don’t want to end there. That’s an area we will obviously reveal and talk about in the coming months.”
 
Also, on the Yen vs Dollar question. Part of the reason they struggle with it vs other Japanese companies is that they have a much higher fixed USD cost base (which made sense with strong Yen), but also they fixed these costs going forwards when their business had a much, much higher income level in the US so their USD income outstripped their fixed costs. Over the last three years USD revenue has decreased by around 25%. Sony are slowly becoming a non-entity in the US as their TVs are uncompetitive and they don't have a significant presence with Xperia, they only division that does significant business in the US is Cyber-Shot and Vaio. That is why it is of paramount importance that Kaz ditch this idea of not tackling the US market and get in there now. Get those USD revenues up to offset the high fixed USD costs. I think they have started already because they have come to the same realisation, but there is still a long way to go yet.

The Dollar/Yen part was what stuck out to me the most. Thanks for the clarification.

He also talked at D11 today, here's the PS4 quotes:

I'm glad you posted this. I saw some posts talking about him being on vacation, but this is what he was really doing.
 
Very interesting interview. That possible spin-off is not looking as scary as I thought and Kaz's intention to finally turn electronics business around soon is really encouraging. Godspeed, Kaz.
 

DC1

Member
To further outline the separation of PlayStation from the Electronic division:
See Sony's public site:

Sony outline each Division with a brief summary of impact:

For Sony Electronics:
-Blu-ray Disc™, CD, DVD and Super Audio CD technologies, among many others. The Company produces and sells a wide range of consumer products, such as
-BRAVIA® high-definition televisions,
-Cyber-shot® digital cameras,
-Handycam® camcorders,
-VAIO® personal computers and Walkman® digital music players.
-Sony is an innovator in high-definition professional broadcast and video equipment, as well, highlighted by the XDCAM® HD and CineAlta™ lines of cameras and camcorders, and the
-SXRD™ 4K digital projector.
-Sony also offers a full line of business-to-business products for medical, security, visual imaging and photofinishing applications. SEL is headquartered in San Diego, CA.

(No mention of Sony Gaming PS3/PS4)

However,
Further down past Film and Music, the Game division is out lined:

Sony Computer Entertainment America (playstation brand, ps3,vita etc..)
180421-sony_computer_entertainment.jpg.140x140_q95.jpg


and

Sony Online Entertainment
SOE_Logo_Rev.jpg.140x140_q95.jpg



link: http://www.sony.com/SCA/who-we-are/our-businesses.shtml#games
 

Izick

Member
I really am excited to hear Sony and Microsoft say they have a lot of interesting games in the tank, but I'm going to just wait for E3 before I get all hyped up one way or the other.
 

Amir0x

Banned
God I love the way Sony talks about the PS4. Such a completely different perspective than Microsoft. Glad to see their arrogance knocked them down an appropriate peg with PS3.
 

QaaQer

Member
God I love the way Sony talks about the PS4. Such a completely different perspective than Microsoft. Glad to see their arrogance knocked them down an appropriate peg with PS3.

yup. and he wasn't even talking to a gaming audience, encouraging stuff.
 

maltrain

Junior Member
He also talked at D11 today, here's the PS4 quotes:

This could mean -I reaaaaally hope this be true- that Sony's E3 conference will be all about games, just like the Microsoft one.

Perfect for me. All others apps can wait or can be presented on the blog, I don't care at all.
 
Sony entertainment probably should've been sold a long time ago. Many words have been written about how the electronics side couldn't go full-steam-ahead with digital initiatives because the entertainment side was worried about its stuff getting pirated. Think about it - can anyone remember a single Sony mp3 player? I can't. That's kind of amazing, especially when you consider that my first iPod replaced my Minidisc player.

I remember Sony mp3 players. Though I know they weren't that popular.
 
Also, on the Yen vs Dollar question. Part of the reason they struggle with it vs other Japanese companies is that they have a much higher fixed USD cost base (which made sense with strong Yen), but also they fixed these costs going forwards when their business had a much, much higher income level in the US so their USD income outstripped their fixed costs. Over the last three years USD revenue has decreased by around 25%. Sony are slowly becoming a non-entity in the US as their TVs are uncompetitive and they don't have a significant presence with Xperia, they only division that does significant business in the US is Cyber-Shot and Vaio. That is why it is of paramount importance that Kaz ditch this idea of not tackling the US market and get in there now. Get those USD revenues up to offset the high fixed USD costs. I think they have started already because they have come to the same realisation, but there is still a long way to go yet.



Like the Xperia Z and ZL in the US....I would drop my phone so fast for one of those..and I'm buying the Xperia Tablet this weekend but I can't actually find it in any stores.... :/

I really hope they manage to turn this around, my first Walkman was a Sony (Of Course) and have always been a fan since then.
 

bon

Member
Kaz please comment on DRM.
All you need to say is "The PS4 will not have always online or used game DRM."
THAT'S ALL YOU NEED TO DO.
 

Overboost

Member
Good to hear they're still focusing on bringing their TV line into the black. Those high-end Bravias are some of the best gaming TVs on the market. My last 2 TVs have been Bravias after 5+ months of research, each.
 

liquidtmd

Banned

He's just so...GIFable


Kazs wife: "Now you won't pull any facial expressions or make any movements in interviews today that will get you all over GAF again will you"


Kaz: "No dear"


*Kaz goes and returns from a day a work*


Kazs wife: "I'm going to stay at my mothers" *Slams door*

Kaz: *checks GAF* "OH FUCKING GODDAMMIT GUYS C'MON, I WASNT DOING ANYTHING IN THAT ONE"
 
He's just so...GIFable


Kazs wife: "Now you won't pull any facial expressions or make any movements in interviews today that will get you all over GAF again will you"


Kaz: "No dear"


*Kaz goes and returns from a day a work"


Kazs wife: "I'm going to stay at my mothers" *Slams door*

Kaz: *checks GAF* "OH FUCKING GODDAMMIT GUYS C'MON, I WASNT DOING ANYTHING IN THAT ONE"

lol
 
I thought the strength of the Yen hurt them in the past, now the weakening Yen is as well?

I need zomgbbqftw to explain it to me in layman's terms.

In addition to zomgwtfbbq's great post, it's pretty simple from the perspective of the vita - price drop in japan, price drop in EU, no price drop in NA. If they could afford to drop it here, they would have.
 
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