Sony’s huge financial troubles for the 4th consecutive year in a row are spelling changes needed for the company. Sony has made massive changes over the last few years. So what’s the next move for the tech giant?

We’ve known that Sony hasn’t been in the best of shapes. The last few years of financial reports from Sony have been less than stellar with significant losses across the board. While the expectations to have quarterly losses reduced are growing, the internal concern of profitability in the future is growing. Sony is in a huge financial rut, and it affects both consumers, the Sony brand and platforms.

A couple of weeks ago, Sony announced that it expected a $1.27 billion loss for fiscal year 2013 (which ended March 2014). That’s a huge stretch from the mere $489 million expected in profit for 2013. These numbers are despite the Playstation brand going strong. Sony’s PS4 is selling faster than they can keep up with. The PS4 is touted as the best selling Next-Gen console, with unit sales over 7 million units sold and software sales over 20 million units sold. So what is the loss from? What can they do to get back on their feet?

The obvious answer to getting the ship back afloat is to focus on the Playstation brand and cut the markets where they are failing. Sony has been catering to the consumer which seems to be paying off. The gaming and entertainment sectors are firing on all cylinders. Projections show 20 million Playstation devices will be sold in 2014 fiscal year. While that is down 45% in units sold from statistics back six years ago; the Playstation brand is Sony’s silver lining. Though on the other hand other divisions like Sony’s PC business are adding on to that annual loss and eating into profits. To shift with the market Sony plans on selling its Vaio PC business. Weak sales, excess inventory and expenses to sale Vaio are mounting on more loss. The return of cutting that branch will also cause 5,000 jobs to be cut.

Another factor here is that Sony is investing in areas that aren’t showing profit (yet) and that’s a large problem. The Wall Street Journal reports that they are struggling with the 4K tv market and bringing back the Walkman as a digital music player. They really need to focus on the Vita’s issues, bunker down a secure future for the PS3/PS4 and ultimately keep their other entertainment sectors focused while getting on to the right innovative paths like Morpheus and improved Bluray discs where there is a consumer interest.

As a step in the right direction to curve numbers and to show solidarity, CEO and President of Sony-Kaz Hirai-will be taking a 50% dock in pay and will be turning down his annual bonus. Other big name executives and leaders at the company will be following suit according to The Wall Street Journal. Kaz has ordered 40 of his executives to return their annual bonuses. It’s a bold move that they will keep fighting for an improved company.

Sony is undoubtedly sinking. If Sony doesn’t do more to fix the problems at hand they will only get pulled under further and lose their footing in the market. Does that mean the possibility of Sony shutting their doors? Probably not. Over a billion in loss is no small number though. Four years of of bad financial reports is not a good sign for a company this big.