Capitalism, I have given up on you. Having pushed the banking fiasco out of my mind, and casually ignored Minnesota's striking lack of full-time employment (Chicken Ramen with Shrachi is my caviar), I've been terribly forgiving with your cruelly capricious nature. Now, the Invisible Hand has sought fit to deliver a hearty b*tch-slap to two console giants: Sony and Nintendo.
Mami Imada, a spokeswoman for Sony, revealed to Bloomburg that the company is cutting executive pay - including that of Kaz Hirai. The cuts come in the wake of startlingly poor performance, which has seen Sony suffer four years of consecutive losses, amounting to 859 billion yen, or just under 11 billion USD. In April, the company declared that it would eliminate roughly 10,000 workers, or about 6% of its labor force, as part of the company's strategy to see a return to profitability. Meanwhile, the New York Post claims that Sony is considering a sale of its New York HQ, estimated to be worth "$700 million and $1 billion, according to sources familiar with the structure." The building currently serves as the home of Sony's music and film divisions.
Of course, the losses come not simply as a result of Sony Computer Entertainment: as noted in the Bloomburg article, "Sony's losses have mounted after customers switched to Samsung Electronics Co. TVs and Apple Inc. iPhones, pushing the shares below 1,000 yen yesterday for the first time since 1980."
On the pay front, Nintendo has taken a similar path: cutting employee summer bonuses by 20%, while reducing executive salaries by an unspecified amount, according to the Japanese business daily, Nikkei (posted by Yahoo News Australia). The company reported an annual loss of 37.3 billion yen; lower-than-expected sales of the Wii and 3DS have been cited as the reasons for the cuts.