NEW YORK (TheStreet) -- By ending its dividend, Sony (SNE) acknowledged it has serious problems in consumer electronics. The only way for CEO Kazuo Hirai to end those problems and save his company is to jettison those businesses.
But history stands in his way.
Sony was created and built by the late Akio Morita, the Steve Jobs of Japan. Morita-san did not run his company in a Japanese way. He innovated -- with transistor radios in the 1950s, TVs in the 1960s, Betamax tape in the 1970s to Walkman tape players in the 1980s. Morita's Sony set standards and earned premium prices.
Watch the video below for a look at Sony's latest guidance:
Read More: 10 Stocks George Soros Is Buying
Sony was the first Japanese company to list on the New York Stock Exchange. Its decisions to buy Columbia Pictures and then CBS Records could have been taken by no other Japanese company of the time.
When Kazuo Hirai became CEO in April, 2012, the failures in consumer electronics were plain. TVs had become flat panels that didn't need replacement. The electronics business had moved to China, where costs are lower.