John Paczkowski

Recent Posts by John Paczkowski

Sony Announces Procurement Cost Killzone for PS3

stringerFacing back-to-back full-year net losses, Sony is taking a hatchet to its fixed costs in a yet another bid to return to profitability. The company plans to halve its roster of suppliers to 1,200, shaving a clean 20 percent off its procurement bill. That should save it 500 billion yen ($5.3 billion) in purchasing costs this fiscal year as it as it trades higher-volume orders for lower prices from its remaining parts suppliers. Nissan (NSANY) did something similar to turn itself around a decade ago, so Sony’s move is not without precedent.

And at this point, the company clearly has to do something. Its last financials were grotesque and the ones to come promise to be little different. The “transformation” Sony began four years ago is still a work in progress, arguably one that’s been stalled for some time now. Once an electronics powerhouse, Sony (SNE) is now a laggard in many of the markets it once dominated: videogame consoles, digital music players and TVs. “The prices of digital home appliances have been declining by 15% to 20% every year lately,” said Sony spokesperson Mami Imada. “Unless we cut costs we cannot hope to survive the price competition.”

Twitter’s Tanking

December 30, 2013 at 6:49 am PT

2013 Was a Good Year for Chromebooks

December 29, 2013 at 2:12 pm PT

BlackBerry Pulls Latest Twitter for BB10 Update

December 29, 2013 at 5:58 am PT

Apple CEO Tim Cook Made $4.25 Million This Year

December 28, 2013 at 12:05 pm PT

Latest Video

View all videos »

Search »

Just as the atom bomb was the weapon that was supposed to render war obsolete, the Internet seems like capitalism’s ultimate feat of self-destructive genius, an economic doomsday device rendering it impossible for anyone to ever make a profit off anything again. It’s especially hopeless for those whose work is easily digitized and accessed free of charge.

— Author Tim Kreider on not getting paid for one’s work