As you may remember, for whatever reason, probably competitive concerns, Apple takes great pains to obfuscate the identity of the company that supplies it with the cameras inside the handset. When IHS iSuppli shared the findings of its teardown analysis with me yesterday, its analysts had no idea who had built that particular part. Two candidates were mentioned: Largan Precision Co. of Taiwan and OmniVision.

A hint had come from a teardown analysis by another company, Chipworks, which had taken the iPhone apart, put its individual chips under a microscope and found a Sony-made imaging sensor inside it.

One reader wrote in to point out this story from April in The Wall Street Journal, detailing an interview in New York between AllThingsD’s own Walt Mossberg and Sony CEO Howard Stringer, where Stringer is quoted talking about how Sony supplies Apple with cameras. “It always puzzles me,” Stringer said at the time. “Why would I make Apple the best camera?”

So there’s some confirmation, of sorts, that Sony is supplying Apple with at least a part of one of the cameras in the iPhone. Analysts have speculated that Apple, always careful about its supply chain arrangements, has probably tapped two suppliers for the main camera, and that Sony and OmniVision are sharing the job.

Now we have even more information. In an update to its analysis of the phone, Chipworks said today that OmniVision appears to be the supplier of the secondary, front-facing camera in the iPhone. As Barron’s noted today, OmniVision’s stock shot up on that revelation.

In June, the company said at E3 that the new device would be available before the end of the year.

Today, Bloomberg reports that the schedule has changed and that the product will now be introduced in Japan before the end of December, followed by launches in the U.S. and Europe early next year.

Kazuo Hirai, Chairman Howard Stringer’s top lieutenant, who talked to reporters in Tokyo today, also said the company has no plans to lower the price of the device.

The Vita, which represents a major update from the last PSP, will cost $249 for a Wi-Fi version, while the AT&T-connected 3G version will cost $299 (not including data plans). Two months ago, those prices seemed competitive, but since then, Nintendo has slashed the price of its struggling 3DS to $170, down from $250.

Both delays and a higher price point will make it difficult for Sony to compete against similar devices, as well as other multi-purpose consumer electronics, which are increasingly being used as game devices, such as phones, iPods and iPads.

The Vita is expected to stand out because of its brilliant 5-inch touchscreen, as well as other nice hardware features, such as front and rear touch pads and cameras that provide additional game control and augmented reality. Many of the games will also be stored in the cloud, so players can pick up on the PlayStation 3 where they left off on the Vita.

“I know this has been a frustrating time for all of you,” Mr. Stringer said in a blog post addressed to Sony customers late Thursday evening. “Let me assure you that the resources of this company have been focused on investigating the entire nature and impact of the cyber-attack we’ve all experienced and on fixing it.”

The intrusion, which occurred last month, resulted in the theft of names, email addresses and possibly credit-card information from its PlayStation Network and Sony Online Entertainment gaming services. Sony took down the PlayStation Network over two weeks ago to investigate the intrusion and secure the network from future attacks.

Read the rest of this post on the original site

Supply chain sources tell Concord Securities analyst Ming-Chi Kuo that the iPhone 5′s design will feature only “slight modifications” from the iPhone 4. The real improvements will be found under the hood. There we can expect to find the faster A5 processor on which the iPad 2 runs, a Qualcomm dual mode GSM/CDMA baseband and a higher resolution 8 megapixel rear camera–presumably the “best” one Sony CEO Howard Stringer accidentally mentioned during an interview with Walt earlier this month.

Kuo expects the iPhone 5 to go into trial production in August, mass production in September and arrive at market some time in October, as Apple’s next fiscal year begins.

PREVIOUSLY:

• IPhone 5 to Headline Apple’s Fall Music Event?
• IPhone Product Cycle Now More of a Platform Cycle
• IPhone 5 to Launch at End of June? Bollocks.
• IPhone 5: LTE? NFC? Natural Language Voice Interface?
• No iPhone at WWDC 2011
• Qualcomm Chip to Power iPhone 5?

Stringer referred to Jobs multiple times throughout the event, sponsored by the Journal, on topics from tablets to Star Trek.

Read the rest of this post on the original site

By handing over the reins of Sony’s two highest-profile businesses, the company is elevating Mr. Hirai, 50 years old, a longtime executive who has played a major role in building the PlayStation business from scratch since the early 1990s, to a position that would make him the front-runner to eventually succeed Mr. Stringer.

Mr. Stringer himself, in an interview with The Wall Street Journal, confirmed the intent behind Mr. Hirai’s promotion. “He is the leading candidate,” said Mr. Stringer, who announced he is staying on as CEO for the foreseeable future. “The logic (of the choice) is inescapable.”

Read the rest of this post on the original site

Under new corporate disclosure rules, publicly traded companies in Japan are required to disclose the annual compensation of executives receiving more than ¥100 million.

The new rules bring to light the closely guarded salary details of Japan’s top executives, and could expose the long-suspected gap in compensation levels between non-Japanese executives and their Japanese counterparts.

Sony said Mr. Stringer’s compensation last fiscal year consisted of about ¥310 million in basic compensation and about ¥100 million in bonuses.

Read the rest of this post on the original site

The meeting comes as the $80 billion market for LCD TVs rebounds amid improving demand and tight industry supply. In recent years, Samsung overtook Sony to be the world’s biggest maker of LCD TVs by shipments. Sony relies on Samsung to supply key components such as LCDs for its Bravia flat-screen televisions.

“It was just a regular dinner meeting…no details of the [LCD] business has been discussed,” Samsung Electronics spokesman James Chung told Dow Jones. A Sony spokesman declined to confirm the reports.

Read the rest of this post on the original site

That’s what Sony says it is trying to do with News Corp. and some of its publications. The partnership the two companies announced today won’t be nearly enough to make Sony’s Reader line competitive. But it does point in the direction both companies would like to head.

Dow Jones (which owns this Web site) will sell a version of its flagship Wall Street Journal for the Reader devices, as well as a “Wall Street Journal Plus” package that includes a second mini-edition of the paper to be published at the end of the day. Also on offer: A Reader-tailored version of the Marketwatch finance site and a subscription to the New York Post.

Sony (SNE) will have the only e-reader that sells the Post and the second edition of the WSJ. But that’s about it as far as exclusivity goes. The regular Reader version of the Journal looks to be the same one Amazon (AMZN) is already selling at the same price: $15 a month for the basic edition.

And even if you’re one of the people who loves to read a print paper on a handheld device, most of these offers don’t make a lot of sense for an e-reader.

The Post is a tabloid that’s pretty much designed to be consumed, then tossed away, in the course of a subway ride–and if you want to get it for free on the Web, you can do that too.

You can also consume all of Marketwatch for free on the Web, where it makes much more sense to do so, since that the site provides constant updates on…the market.

And given the Journal’s increasing emphasis on speed and breaking news, you’d think its paying subscribers would want the freshest copy possible. But the Sony Reader version is completely static.

So this is pretty much a symbolic deal, right? More or less, Sony CEO Howard Stringer told a press conference this morning. The big picture, he says, is that devices like the Reader are both a growth business for Sony and an opportunity for content owners to charge for stuff that has been free on the Web.

“The sense of losing control of our content is on all of our minds,” says Stringer, whose company is famously both a hardware manufacturer and an entertainment provider. “We’re trying to preserve the value of content in both movies and music and newspapers.”

That dovetails with News Corp.’s (NWS) big-picture plans, which CEO Rupert Murdoch has been has been hollering out at every opportunity: Pay up.

But there’s also a more practical side to the deal for News Corp., which wants to distribute its stuff on as many platforms as possible–and extract better terms than it gets from Amazon and its Kindle platform.

In November, Murdoch said his company was getting up to $6.50 for each $15 Journal subscription it sold via Amazon (AMZN), but noted that this isn’t enough. News Corp. and other publishers have also carped that Amazon keeps valuable customer data for itself.

The Sony deal offers better terms, said Wall Street Journal Managing Editor Robert Thomson, without getting into specifics: “I think you can assume that we’re getting a better deal and that our concerns about customer information have been addressed.”

Speaking at the first joint public appearance by Sony’s new management team since a shake-up in February, Mr. Stringer said the Japanese giant is “moving faster than we’ve ever moved” to meet parallel challenges.

Sony is racing to close the gap with technology companies like Apple Inc. (AAPL) and Amazon.com Inc. (AMZN) that have used Internet services to enhance standalone electronics like digital-music players and electronic-book readers. Sony was a pioneer in both only to see it early advantage evaporate without a strong online component.

At the same time, Sony is trying to overhaul its core electronics division, a business encumbered by heavy overhead costs and an inefficient supply chain. This has put the company at a disadvantage to both conglomerates like Samsung Electronics Co. and upstarts like discount TV maker Vizio Inc.

Read the rest of this post on the original site

With the consumer electronic industry still languishing, Sony (SNE) has little reason to be optimistic. In an interview with Italian business daily Il Sole 24 Ore, CEO Howard Stringer said he’s seen little sign of a recovery in Sony’s business. “From my viewpoint, that of Sony and its consumer electronics products the picture for the time being has not improved very much,” Stringer said. “There hasn’t been that turning point that many had hoped for. We are waiting for a signal that hasn’t arrived.”

Alas, the Foursquare conference, hosted by the Quadrangle PE fund, is an invitation-only affair. And the event, which kicks off tomorrow, is closed to the press except for reporters onstage to interview the stars. And those conversations don’t get released to the public.

That’s a particular bummer this time. Because the Quadrangle guys–who have had a rough year–had the foresight to get a lineup that includes GE (GE) CEO Jeff Immelt, who appears to be in the final stages of selling NBC Universal to Comcast (CMCSA) CEO Brian Roberts, who will also be onstage. Sure would be nice to hear what they say.

Another panel that piques my interest, if only because of the title: “Are Popularity and Profitability Correlated?” It features Twitter’s Stone, LinkedIn founder Reid Hoffman and YouTube co-founder Chad Hurley. And would-be moguls are represented by a start-up pitch panel that includes Dennis Crowley of Foursquare, the superbuzzy mobile service whose name has nothing to do with Quadrangle’s conference.

So once again, here’s the complete list of those you won’t be hearing from this week as they gather at the Plaza in Manhattan. Unless, perhaps, one of my more ambitious colleagues sneaks in–I’m thinking of you, Bobby MacMillan–and gets us a first-hand account.

2009 SPEAKERS
EMILIO AZCÁRRAGA President, Board of Directors and CEO, Grupo Televisa
DENNIS CROWLEY Co-Founder, foursquare
BARRY DILLER Chairman and CEO, IAC; Chairman, Expedia, Inc. and Ticketmaster Entertainment, Inc.
BRIAN DUNN CEO, Best Buy
CHARLES FORMAN Founder, OMGPOP
REED HASTINGS Founder, Chairman and CEO, Netflix
REID HOFFMAN Executive Chairman and Founder, LinkedIn Corporation
CHAD HURLEY CEO and Co-Founder, YouTube
JEFF IMMELT Chairman and CEO, GE
PAUL JACOBS Chairman and CEO, Qualcomm Incorporated
OLLI-PEKKA KALLASVUO President and CEO, Nokia
JASON KILAR CEO, Hulu
LESLIE MOONVES President and CEO, CBS Corporation
ANNE MULCAHY Chairman, Xerox Corporation
JAMES MURDOCH Chairman and Chief Executive, Europe & Asia, News Corporation
BRIAN PHILLIPS CEO and Co-Founder, Thread
DAN PORTER CEO, OMGPOP
BRIAN ROBERTS Chairman and CEO, Comcast Corporation
PAUL SAGAN President and CEO, Akamai
ERIC SCHMIDT Chairman and CEO, Google
IVAN SEIDENBERG Chairman and CEO, Verizon Communications
BIZ STONE Co-Founder, Twitter
HOWARD STRINGER Chairman, CEO and President, Sony Corporation
BEN VERWAAYEN CEO, Alcatel-Lucent
DAVID ZASLAV President and CEO, Discovery Communications

MODERATORS
MARC ANDREESSEN General Partner, Andreessen Horowitz
KEN AULETTA Author and Writer, “Annals of Communications”, The New Yorker
MARIA BARTIROMO Anchor, Closing Bell; Host & Managing Editor, Wall Street Journal Report, CNBC
JAMES CITRIN Co-Leader, Board & CEO Practice, North America, Spencer Stuart
DAVID FABER Anchor, Reporter, CNBC
MICHAEL HUBER Co-President and Managing Principal, Quadrangle Group
BECKY QUICK Co-Anchor, Squawk Box, CNBC
GEOFFREY SANDS Director & Leader, Global Media, Entertainment & Information Practice, McKinsey & Co.
JOSHUA L. STEINER Co-President and Managing Principal, Quadrangle Group
GEORGE STEPHANOPOULOS Anchor, This Week; Chief Washington Correspondent, ABC News

Hence, Sony’s announcement that it’s making a big bet on…3-D TVs. CEO Howard Stringer is using the IFA Technology Show in Berlin to announce that Sony will make 3-D Bravia sets.

And 3-D Vaio laptops. And 3-D PlayStation3s. And 3-D Blu-ray DVD players.

No plans for a 3-D Walkman, though. (But wait!)

This is a recurring theme for Sony, by the way: Stringer also talked up 3-D in January at the Consumer Electronics Show. I still wonder about the actual demand for this; I sampled some new-fangled 3-D at CES and left underwhelmed. But the stuff I saw–a live broadcast of the college football championship game–was, admittedly, an experiment.

In any case, even if you believe Stringer’s assertion that consumers really love the new 3-D experience, there are some big hurdles before Sony (SNE) or anyone else in home electronics can capitalize on it. For instance:

• A looming format war, the same thing that kept Blu-ray from taking a running start at the DVD market.
• Ginormous prices: Sony hasn’t said how much its 3-D-enabled TV sets will cost, but the ones that rival LG go for something like $5,500.

In a research note today, FTN Equity Capital Markets analyst James Hardiman said “evidence is mounting” that Sony will announce a PS3 price cut, perhaps during its Tuesday presentation at GamesCon.

Videogame analyst Heath Terry of FBR Capital Markets shares this view, and in a note to clients, he put a dollar figure on the cut. “With Sony set to announce a $100 price cut on the PS3 on Tuesday at Gamescom in Germany according to our retail checks, we believe the other hardware manufacturers will respond with a combination of price reductions and bundling strategies that should drive significant acceleration in hardware sales,” Terry wrote, adding that the cut, should it come to pass, will mark “the first of a series of catalysts that should drive a return to growth” for the videogame industry.

Certainly, it would give Sony (SNE) a nice boost in sales in the run-up to the winter holiday consumer binge. And given its most recent financials, the company could really use one right now.

“If we were any more successful, we’d be bankrupt.”

– Sony CEO Howard Stringer on the company’s LCD business, May 28, 2008

About the best thing to be said for Sony’s grotesque financial results is that they came in smaller than expected. The company’s 98.9 billion yen ($1 billion) loss for the fiscal year ended March–its first net loss in 14 years–wasn’t nearly as bad as the 150.0 billion yen ($1.57 billion) figure it had predicted in January or even close to the 173.8 billion yen ($1.8 billion) analysts polled by Thomson Reuters had been forecasting. And the same is true for Sony’s fourth quarter, as well. The net loss of 165.1 billion yen ($1.7 billion) it reported was far better than the 228.7 billion yen ($2.39 billion) forecast.

Still ugly as hell, though. And according to the company’s leadership, its next fiscal year will be little different. Sony is forecasting a loss of 120 billion yen ($1.2 billion). Given that unfortunate outlook, Sony (SNE) is closing three factories in Japan, part of an ongoing effort to shore up a business ravaged by the worst recession in decades. But cost-cutting measures like that can only do so much.

As analysts note, what Sony really needs is a killer product. It is no longer the force it once was in consumer electronics, having ceded its dominance in portable music players to Apple (AAPL) and its leads in the television and videogame console markets to Samsung Electronics and Nintendo. “Their outlook gave me the impression that their business is heading for a gradual recovery,” Fujio Ando, senior managing director at Chibagin Asset Management, told Reuters. “But it would all depend on whether they would be able to start producing popular products, because right now they have no ‘Number One’ products. I see Sony’s branding power weakening.”

And that’s something of which Sony is painfully aware.

“We have two distinct challenges facing us,” Sony CEO Howard Stringer recently told the New York Times. “The first is the global slowdown, which forces us to make significant adjustments. The second challenge is the evolution of our competitive environment. New competitors [are] springing out everywhere.”

Indeed. And while Sony seems to be meeting the first challenge, albeit slowly, it hasn’t yet begun to make headway toward meeting the second. And at this point, one wonders if the company is even capable anymore. As Japanese Economy, Trade and Industry Minister and former Sony employee Akira Amari asked back in October 2006, “What has become of the Sony known for its technology?”

Incredibly, this is the seventh year of the D: All Things Digital conference.

We feel very lucky to get here, especially in the midst of what our own site’s Digital Daily scribe, John Paczkowski, has so perfectly dubbed the “econalypse.”

Ironically, Walt Mossberg and I planned to launch the very first conference in the middle of the last major downturn for tech, in 2001. But, in the carnage of the Web 1.0 meltdown, we actually held off for two years, with our first D gathering taking place in 2003.

It’s been a real winning streak since then for D, due in large part to our great speakers–such as Microsoft (MSFT) icon Bill Gates and Apple (AAPL) legend Steve Jobs.

Both have been onstage many times over the years, including a historic interview the pair of tech titans did together in 2007 at D5.

Other amazing speakers have included: Howard Stringer of Sony (SNE), Barry Diller of InterActiveCorp (IACI), legendary director George Lucas, Time Warner (TWX) CEO Jeff Bewkes, Jeff Bezos of Amazon (AMZN), former eBay (EBAY) CEO Meg Whitman, News Corp. (NWS) head Rupert Murdoch, Microsoft head Steve Ballmer, Walt Disney (DIS) honcho Bob Iger, Bobby Kotick of Activision Blizzard (ATVI), CBS (CBS) CEO Les Moonves, Democratic and Republican pols like former Vice President Al Gore and Sen. John McCain, all the leadership of Google (GOOG) and many, many more.

We have had a lot of great moments onstage with all these tech and media players over the years, to be sure, with interviews ranging from the funny to the sublime to the truly disastrous.

But, like the digital industry and the innovation our conference focuses on, we also like to lean forward to try to figure out what the Next Big Thing is around the corner, whether it comes from Silicon Valley or not.

That’s why we’re kicking off our conference on May 26 with two of the founders of Twitter–Biz Stone and Evan Williams–who are riding high on tech’s latest hot thing, which might turn out to be either a rocket ship or a shooting star.

They’ll be followed up over the next two days by a plethora of interesting players, from the leaders of several major mobile companies to content execs hit hard by fast-moving digital forces to a new Internet leader like Yahoo (YHOO) CEO Carol Bartz, who is trying to turn around one of the Web’s great icons from its more recent lackluster path.

And, as we always do, we will be featuring a spate of demos too, trying to see if we can unearth that next next thing.

In the past, the D stage has seen the debut of start-up products like Sling Media’s Slingbox, Aliph’s Jawbone and Pure Digital’s Flip, all of which have gone onto glory. And also some, like Palm’s Foleo, which did not.

While not everyone can attend D, our crack staff is committed to bringing all the action from this year’s conference to readers of the All Things Digital site via up-to-the-minute blogs, photos, videos, tweets, digs and more. We’ll also, as soon as we can, post the videos of each of the onstage sessions, in their entirety.

Until it all kicks off, here is the list of speakers, below, in alphabetical order, who will be appearing at 2009′s D7 conference:

Irving Azoff | CEO of Ticketmaster Entertainment (TKTM)

Mitchell Baker | Chairman of Mozilla

Steve Ballmer | CEO of Microsoft

Carol Bartz | CEO of Yahoo

Mark Cuban | Chairman of HDNet and Owner of the Dallas Mavericks, Landmark Theaters and Magnolia Pictures

Eve Ensler | Playwright and Founder of V-Day

Arianna Huffington | Editor-in-Chief of the Huffington Post

Olli-Pekka Kallasvuo | CEO of Nokia (NOK)

Mike Lazaridis | Co-CEO of Research In Motion (RIMM)

John Lilly | CEO of Mozilla

John Malone | Chairman of Liberty Media Corporation (LCAPA)

Roger McNamee | Partner, Elevation Partners

Jon Miller | Chief Digital Officer of News Corp.

Jon Rubinstein | Executive Chairman, Palm (PALM)

Randall Stephenson | CEO of AT&T (T)

Biz Stone | Co-founder of Twitter

Owen Van Natta | CEO of MySpace

Katharine Weymouth | Publisher of the Washington Post (WPO)

Evan Williams | Co-founder and CEO of Twitter

Jeff Zucker | CEO of NBC Universal (GE)

Incredibly, this is the seventh year of the D: All Things Digital conference.

We feel very lucky to get here, especially in the midst of what our own site’s Digital Daily scribe, John Paczkowski, has so perfectly dubbed the “econalypse.”

Ironically, Walt Mossberg and I planned to launch the very first conference in the middle of the last major downturn for tech, in 2001. But, in the carnage of the Web 1.0 meltdown, we actually held off for two years, with our first D gathering taking place in 2003.

It’s been a real winning streak since then for D, due in large part to our great speakers–such as Microsoft (MSFT) icon Bill Gates and Apple (AAPL) legend Steve Jobs.

Both have been onstage many times over the years, including a historic interview the pair of tech titans did together in 2007 at D5.

Other amazing speakers have included: Howard Stringer of Sony (SNE), Barry Diller of InterActiveCorp (IACI), legendary director George Lucas, Time Warner (TWX) CEO Jeff Bewkes, Jeff Bezos of Amazon (AMZN), former eBay (EBAY) CEO Meg Whitman, News Corp. (NWS) head Rupert Murdoch, Microsoft head Steve Ballmer, Walt Disney (DIS) honcho Bob Iger, Bobby Kotick of Activision Blizzard (ATVI), CBS (CBS) CEO Les Moonves, Democratic and Republican pols like former Vice President Al Gore and Sen. John McCain, all the leadership of Google (GOOG) and many, many more.

We have had a lot of great moments onstage with all these tech and media players over the years, to be sure, with interviews ranging from the funny to the sublime to the truly disastrous.

But, like the digital industry and the innovation our conference focuses on, we also like to lean forward to try to figure out what the Next Big Thing is around the corner, whether it comes from Silicon Valley or not.

That’s why we’re kicking off our conference on May 26 with two of the founders of Twitter–Biz Stone and Evan Williams–who are riding high on tech’s latest hot thing, which might turn out to be either a rocket ship or a shooting star.

They’ll be followed up over the next two days by a plethora of interesting players, from the leaders of several major mobile companies to content execs hit hard by fast-moving digital forces to a new Internet leader like Yahoo (YHOO) CEO Carol Bartz, who is trying to turn around one of the Web’s great icons from its more recent lackluster path.

And, as we always do, we will be featuring a spate of demos too, trying to see if we can unearth that next next thing.

In the past, the D stage has seen the debut of start-up products like Sling Media’s Slingbox, Aliph’s Jawbone and Pure Digital’s Flip, all of which have gone onto glory. And also some, like Palm’s Foleo, which did not.

While not everyone can attend D, our crack staff is committed to bringing all the action from this year’s conference to readers of the All Things Digital site via up-to-the-minute blogs, photos, videos, tweets, digs and more. We’ll also, as soon as we can, post the videos of each of the onstage sessions, in their entirety.

Until it all kicks off, here is the list of speakers, below, in alphabetical order, who will be appearing at 2009′s D7 conference:

Irving Azoff | CEO of Ticketmaster Entertainment (TKTM)

Mitchell Baker | Chairman of Mozilla

Steve Ballmer | CEO of Microsoft

Carol Bartz | CEO of Yahoo

Mark Cuban | Chairman of HDNet and Owner of the Dallas Mavericks, Landmark Theaters and Magnolia Pictures

Eve Ensler | Playwright and Founder of V-Day

Arianna Huffington | Editor-in-Chief of the Huffington Post

Olli-Pekka Kallasvuo | CEO of Nokia (NOK)

Mike Lazaridis | Co-CEO of Research In Motion (RIMM)

John Lilly | CEO of Mozilla

John Malone | Chairman of Liberty Media Corporation (LCAPA)

Roger McNamee | Partner, Elevation Partners

Jon Miller | Chief Digital Officer of News Corp.

Jon Rubinstein | Executive Chairman, Palm (PALM)

Randall Stephenson | CEO of AT&T (T)

Biz Stone | Co-founder of Twitter

Owen Van Natta | CEO of MySpace

Katharine Weymouth | Publisher of the Washington Post (WPO)

Evan Williams | Co-founder and CEO of Twitter

Jeff Zucker | CEO of NBC Universal (GE)

What has become of the Sony known for its technology? I hope it will solve its problems soon to quickly recover its brand image reputed for technological prowess.”

– Japanese Economy, Trade and Industry Minister and former Sony employee Akira Amari, October 2006

Now that Sony’s old guard has taken what was once a strong electronics and gaming brand and run it into the ground, the company’s new guard is circling back to resurrect it. This morning the company announced a management overhaul that will see CEO Howard Stringer succeed Ryoji Chubachi as president and assume responsibility for Sony’s key electronics division. It will also see the creation of two new business groups: The first, Networked Products & Services Group, will consolidate Sony Computer Entertainment, the company’s Vaio division and its mobile and Walkman unit. The second, the New Consumer Products Group, will include Sony’s TV, digital imaging, home audio and video businesses. Spanning the two groups will be a cross-divisional software and technology unit charged with ensuring compatibility among their products.

Sony (SNE) says its new structure is aimed at giving the company the agility it has so sorely lacked for so long and to “speed up the transformation of Sony that was started four years ago,” which has all but stalled, if the company’s recent financial performance is any indication. “Have I broken down all the silo walls? No,” Stringer told the New York Times. “Are they very strong and very thick? Yes. But we’ve broken down a lot of them. Our goal is to continue to do that. We have two distinct challenges facing us. The first is the global slowdown, which forces us to make significant adjustments. The second challenge is the evolution of our competitive environment. New competitors springing out everywhere.”

If we were any more successful, we’d be bankrupt.”

– Sony CEO Howard Stringer on the company’s LCD business, May 28, 2008

What a dark day this is for Sony. Its hand forced by a profound deterioration in the current business environment, the company today slashed its forecast for the current financial year and said it will soon post an annual loss for the first time in 14 years. And that loss will be far worse than even the most pessimistic forecasts–$1.65 billion.

A bitter turn of fortune for Sony (SNE), which as recently as October had claimed it would make a profit this year. Clearly, the deepening worldwide recession has been particularly cruel to the company. And though Sony is attempting a perilously overdue restructuring that will trim 16,000 jobs and six factories from its books, analysts are beginning to wonder if the notoriously fragmented company might need to take even more drastic steps. “Its business model and operational issues account for 80-90 percent of Sony’s poor earnings,” Nomura Securities senior analyst Eiichi Katayama told Reuters. “Domestic production costs are a concern but this move is not something that would bring it back to the black or cut losses in half. Sony has to consider ways to lower fixed costs not only for its TV business but for the whole company. It will have to start cutting development costs in addition to production costs.”

That’s something Sony hasn’t seen since Hollywood producers Jon Peters and Peter Gruber managed to incinerate the company’s balance sheet in the mid-90s. Variety:

This contrasts with the $2.2 billion operating profit Sony predicted in October.

The Nikkei said the loss could balloon to $2 billion, depending on how successful Sony is in cutting inventory in the January-March quarter.

If the Nikkei forecast comes to pass, it will be Sony’s first loss in 14 years, when it took a one-time charge for its pictures division.

Black ink has turned red because of lower-than-expected sales of Sony’s flat-panel TVs and other products, primarily in the U.S. market, while the rapid strengthening of the yen has devastated the bottom lines of all Japanese export industries.”

Upside? Sony (SNE) still makes really cool stuff. Last year at All Things Digital, Stringer showed off a super-thin, super-expensive TV that used organic light-emitting diodes. Last week at CES, the company was showing off a different application for OLED: flexible screens.

Here’s a Sony rep telling you about the technology, but not doing a good job of showing it off:

And here’s video from Obsessable, which actually displays the goods: