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Most PSN Users Have Come Back, But Financial Consequences for Sony Leadership

Both Howard Stringer and Kaz Hirai took a pay cut, following Sony's third annual loss.

Did anyone really expect gamers would stay away from PSN for long?
Did anyone really expect gamers would stay away from PSN for long?

For the most part, the PlayStation Network hacking is behind us. There are still lingering issues with the service in Japan, but most of the world has moved on, looking forward to betas for Uncharted 3 and Journey.

In fact, Bloomberg reports that Sony CEO Howard Stringer announced to shareholders this week that 90% of users have jumped back online to PSN since its return.

There have been consequences for Stringer and PlayStation leader Kaz Hirai, though.

Both had their salaries slashed, a move likely spurred from a combination of PSN's troubles and Sony's third straight annual loss. The most recent loss is actually Sony's greatest reported loss in 16 years.

Ouch.

Hirai has largely been expected to succeed Stringer as the head of Sony. It's been unclear whether the PSN incident will change that direction, but in March, Hirai was promoted to more than just PlayStation, tasked with revitalizing Sony's entire consumer electronics division.

Patrick Klepek on Google+

96 Comments

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adziboy

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Edited By adziboy
@doejonathan said:
@Adziboy: In an interview with Gamasutra, Jack Tretton said PSN traffic is at 90% of the pre-hack levels. Which is different from saying 10% of PS3 owners have not logged back in. Nonetheless, it's going to be an expensive year for Sony and time will tell how this will influence the consumer's choice in the next generation of consoles.
Ah ok. So the actual number of users could be anything. Right, gotcha.
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mnzy

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Edited By mnzy
@Krakn3Dfx said:

@mnzy said:

@Goldanas said:

That bums me out, but it's tough times for all.

Actually, economy is on the rise everywhere for a while now.

Where's this at? I wouldn't call an economy where most states are still over 10% unemployment and having to cut billions per state in education an economy on the rise.

These are different problems. Job creation in the US is far behind the actual growth and those of other countries.  Read about it here I guess.
This is a Japanese company, I wasn't talking about the US exclusively.
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MisterMouse

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Edited By MisterMouse

bummer, hopefully sony can eventually get completely back on their feet and be a bit stronger.

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TechnicallyProficient

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SIR Howard Stringer!

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confideration

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Edited By confideration

I am one of those 90% because I logged in to change my password. That doesn't mean I use the service.

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tourgen

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Edited By tourgen

Sony's quality overall seems to be on a steady decline for the last 10 years or so. Everything from consumer electronics to their studio gear. They used to be #1 for studio quality stuff but I wouldn't say that now. Something similar happened to HP where they kicked most of their veteran engineers to the curb and outsourced the work or spun out divisions to separate companies. HP/Agilent is no more. What's left is pretty much junk.

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MideonNViscera

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Edited By MideonNViscera

Aw, poor rich people.

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Xero0

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Edited By Xero0

kaz harai can't buy that new car he wanted anymore. least he gets to play uncharted 3 :D

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crashtanuki

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Edited By crashtanuki

Wasn't the 90% figure announced at their E3 press conference?

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HerbieBug

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Edited By HerbieBug

Shortly after PSN came back up I thought about purchasing something off the store.  I made my selection and followed the usual prompts, then it asked me for my credit card as I had not re-entered it since the crash.  I looked at my credit card in my hands, looked back up at PSN, looked down, then up, and down again.  Hesitation.  Slid credit card back in wallet unentered, logged off PSN.  Sorry Sony, I don't trust you anymore.  :(

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lockload

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Edited By lockload

Im going to buy psn cards now to topup my account the aint having may card details again

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EXCellR8

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Edited By EXCellR8

i was back on PSN the second it went live again... deleted my CC info but i'm over it

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RoyCampbell

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Edited By RoyCampbell

They got pay cuts? Aww, poor guys. Hope they can get through this tough time.

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JFetch

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Edited By JFetch

We came back for the free stuff. The question is if we'll stay.

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Vinny_Says

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Edited By Vinny_Says

So it's Sony's loss or the Playstation brand's loss?

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Aaron_G

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Edited By Aaron_G

Sony has lots of problems and I think it stems from poor leadership and too much confidence in the PlayStation name.

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avidwriter

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Edited By avidwriter

I find this to be oddly karma related.

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Uberjannie

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Edited By Uberjannie

Never did like Sony much after Sony installed a rootkit on my PC because I listened on a legitimate music CD on my Computer.

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pot

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Edited By pot

Another huge loss for Sony. MS and Ninty are doing fine.

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Coombs

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Edited By Coombs
@Microshock said:

Oh no, they'll have to order one less 30 pound lobster now. But hey, I feel for Sony, those hackers are pathetic losers with no life who need to try to prove ridiculous points. 

Considering several of them are transgendered that could be construed as hate speech, 
Just because they have pee-pees instead of taa-taas doesn't make them losers you hateful bastard 
lol?
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RE_Player1

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Edited By RE_Player1

@pot said:

Another huge loss for Sony. MS and Ninty are doing fine.

The Xbox division has been growing for awhile, after so many years of losing Microsoft money, but as a whole the company is not in the greatest spot.

Also Sony is a huge company. Yes the Playstation brand isn't doing as well as it did in the PS2 days but it's far from Sony's main problem.

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Slither_Maggot

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Edited By Slither_Maggot

Really... salary cuts... that's it... what the fuck?!

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Robo

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Edited By Robo

Probably wont even feel it.

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geirr

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Edited By geirr

You reap what you sow-ny! *gunshot*

Maybe from now on they'll update their webOS at relevant intervals and keep their firewall on.

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mewarmo990

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Edited By mewarmo990

@jabbertrack said:

I am one of those 90% because I logged in to change my password. That doesn't mean I use the service.

I think "users" like this fellow are a large part of Sony's optimistic data.

Incidentally, it's this whole scandal that got me to break out my PS3 and start playing it regularly again for the third time since I bought it last December.

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xpgamer7

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Edited By xpgamer7

After the PSN problems there was bound to be some impact.

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pot

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Edited By pot
@RE_Player92 said:


                   

@pot said:

Another huge loss for Sony. MS and Ninty are doing fine.

The Xbox division has been growing for awhile, after so many years of losing Microsoft money, but as a whole the company is not in the greatest spot.

Also Sony is a huge company. Yes the Playstation brand isn't doing as well as it did in the PS2 days but it's far from Sony's main problem.



                   

               

Well yeah I agree they have other problems, I think leadership at the top of Sony as a whole needs a revamp. But MS just had a record third quarter. Maybe you can clarify what you meant about MS?
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copycatzen

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Edited By copycatzen

If sony wants to take the lead, they will have to release their next console generation way before microsoft, but also I dont think that is going to happen any time soon. Especially when we keep seeing the current systems being pushed more and more...

On the other hand, I personally would buy any new gen console, even if it is expensive. I love having the latest technology at home.

Sony could maybe launch the "PS4" with some games being compatible with both the PS3 and the "PS4" (having better graphics, resolution, 3D, textures, frame rate, etc on the "PS4". And with the bluray capacity, it would not be a problem). That could help people making the transition from the PS3 to the "PS4" little by little whenever money allows it. They would also need to allow people with PS3 to play online with "PS4" users.

They could also do some kind of crazy shit to allow people with Xbox360 to transfer their achivement points from Live to PSN trophies for multiplatform games. That should not be so hard, similar to what giantbomb did here to pull our achievement data. Although I dunno how microsoft would react to that. LOL.

Ohhh the future, I cannot wait to see it... mmhhhhh actually I can.... because I have to.

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jkuc316

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Edited By jkuc316
@rudyarr said:

ouch..I feel for sony man. yeah they still have a lot of money but this whole hack thing was really bad publicity for them. I still love my PS3 :)

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niamahai

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Edited By niamahai

i'm surprised they didn't patch out the 1 PSN A/C = 5 copies thingy.

Its being abused to hell from where I'm at.

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KaneRobot

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Edited By KaneRobot

Oh no, now they are only millionaires instead of millionaires.

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Dork_Metamorphosis

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If by "come back" they mean downloaded the free stuff, then yeah. I did that. Then I turned the PS3 off again and went back to playing 360.

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nizo182

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Edited By nizo182
@KaneRobot: Well said.
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thepantheon

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Edited By thepantheon

I've literally had a pleasant time with Sony throughout the entire experience.

A few weeks of no online? .. Fine? I still don't have to pay for goddamn online, just like my PC.

I don't think I'll ever be able to embrace that weird barrier.

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Kasswara

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Edited By Kasswara

Ouch indeed.

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Snail

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Edited By Snail

I think that the PS3 division is making money Patrick. I read something on Gamespot about it being one of the biggest, if not the biggest, source of finance for Sony. If their salaries were cut, it might be because they might've had something  to do with with the lay offs in the security staff of PSN just one week before the attack. 
 
Punishment for a bad decision makes a lot more sense than punishing them for making profit I guess. But I am not 100% sure of all this.

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JoeH

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Edited By JoeH

Of course everyone has come back, what else could they do? Spend £190 on an xbox? ON which none of their games will work? The unfortunate thing is that even if someone has lost all trust in sony, they're just gonna have to stick with them cause people have invested so much in the system.

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RE_Player1

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Edited By RE_Player1
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Example1013

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Edited By Example1013

@RE_Player92 said:

@pot said:

Another huge loss for Sony. MS and Ninty are doing fine.

The Xbox division has been growing for awhile, after so many years of losing Microsoft money, but as a whole the company is not in the greatest spot.

Also Sony is a huge company. Yes the Playstation brand isn't doing as well as it did in the PS2 days but it's far from Sony's main problem.

Nobody sees MS numbers breakdown, but how much do you want to bet that XBox Live subscriptions are keeping Microsoft afloat right now?

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the_OFFICIAL_jAPanese_teaBAG

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@copycatzen: i agree with you.  kind of like how the 360 was released way before the ps3 was.  it developed a solid fan base before the ps3 and the insane launch price of the ps3 didnt help sony either... 
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PrivateIronTFU

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Edited By PrivateIronTFU

If Sony wants to be completely forgiven in my book, they'll replace all those digital 4k projectors they've installed in theaters with significantly better models. Those projectors fucking suck. Every time I go to a movie with a Sony projector, I can barely make out anything because the screen's so fucking dim.

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pot

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Edited By pot
@example1013 said:


                   

@RE_Player92 said:

@pot said:

Another huge loss for Sony. MS and Ninty are doing fine.

The Xbox division has been growing for awhile, after so many years of losing Microsoft money, but as a whole the company is not in the greatest spot.

Also Sony is a huge company. Yes the Playstation brand isn't doing as well as it did in the PS2 days but it's far from Sony's main problem.

Nobody sees MS numbers breakdown, but how much do you want to bet that XBox Live subscriptions are keeping Microsoft afloat right now?



                   

               

Highly doubt that, they make profits on the consoles and Kinect and the 360 has an amazing software attach rate (last I checked it was 8 games for every console, no other game console even comes close). Live helps but they also make money on other things in the Xbox division.
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Example1013

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Edited By Example1013

@pot: Yeah, but basically what I'm saying is, how much money is MS actually making besides off of 360? At least half of their userbase hasn't upgraded the OS in 10 years, and I'd wager the upgrade rates for office are similar.

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pot

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Edited By pot
@example1013 said:



                   

@pot: Yeah, but basically what I'm saying is, how much money is MS actually making besides off of 360? At least half of their userbase hasn't upgraded the OS in 10 years, and I'd wager the upgrade rates for office are similar.



                   

               

Windows 7 was a smashing success. Office 2010 is selling well. MS had revenue of almost 17 billion in just the third quarter with close to 6 billion in net income in just the third quarter. They have no problems really except their stock price is stagnant. 
http://www.microsoft.com/investor/EarningsAndFinancials/Earnings/PressReleaseAndWebcast/FY11/Q3/default.aspx
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MeatSim

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Edited By MeatSim

Even with the pay cut those two guys are still making plenty of money.