Nothing new here except that this looks to be the critical moment for Howard. If he can really make deep cuts, literally shed 20-35% of the business that is not profitable, then he has a chance of keeping Sony relevant. If Stringer can’t make cuts that deep, he’ll be replaced within a 1-2 year time frame with some lame Japanese executive who’d never make those cuts. This is the moment for Sony to seize the fact that Howard is NOT JAPANESE, and Sony is NO LONGER PROFITABLE, and to make the necessary cuts. As a shareholder myself, I demand no less.
Koya Tabata, a Credit Suisse analyst, recently warned investors that the restructuring of Sony is perilously overdue and must be radical. Sony management needs to make a rapid shift in its business model to one driven by earnings in the content business, he said.
The focus of research and development must be on software, he said, adding: “The most important thing is that, to improve organisational strength in the areas of development, purchasing and marketing, it will be necessary to further concentrate power in the hands of [Sir Howard] and unless this is achieved we believe [Sony] will be unable to close the gap with competitors such as Apple and Nintendo.”