Sony CEO Kazuo Hirai and other key execs have cut their salaries by half in acknowledgement of the company’s projected billion-dollar losses for the last fiscal year.

Kaz Hirai Sony executives take pay cuts amid companys $1.27 billion financial losses

A few weeks ago Sony delivered its projections for 2013’s fiscal year, and these numbers would indeed be a harsh wake up call for the company as a whole.

The projections entailed a estimated loss of $1.27 billion, a stout figure that was accumulated thanks to Sony’s current stance on its PC sector as well as failed grasps in other sectors including the mainstream 4K TV market.

As a result of these rather serious projected losses, Sony CEO Kaz Hirai–and a number of other high-profile execs–have cut their salaries in half. Hirai has also forgone his annual salary as a solemn acknowledgement of the company’s fiscal strife. This motion is similar to Nintendo’s Satoru Iwata’s likewise self-appointed pay reduction when Nintendo was hit with financial dire straits earlier this year.

There is a silver lining in the news, however: Sony’s PlayStation 4 continues to be a resounding success in the gaming industry, with over 7 million total units sold globally. The console’s stellar performance may give the company some wiggle room as it attempts to find its footing in other markets and sectors,

This concurrent loss marks Sony’s fourth consecutive profit loss in the last five years of Hirai’s administration, however, and this will no-doubt have an effect on investor relations.

Further worries include Microsoft’s announcement of a Kinect-less Xbox One for the same price as a PS4, as Sony may have even more trouble hitting the projected 20 million PlayStation 4’s it intends to sell for 2014’s fiscal year.

It will be interesting to see how Sony plans to diversify its company’s portfolio and recoup its losses in the next fiscal year; possibly we’ll see some company restructuring as well as renewed focus on other entertainment/hardware sectors. The PlayStation brand is set to expand with the PlayStation Now streaming service, and we may see a PS Vita/PS4 bundle or a PS4 price reduction sometime in the future.

Via The Wall Street Journal