After years of posting losses in its pursuit of market share, Japanese electronics giant Sony has announced that it will reduce support for its money-haemorrhaging mobile and TV divisions. It will instead focus on two divisions that consistently make good money: PlayStation and image sensors.
The PlayStation division has been raking in the cash, with sales of Sony’s newest games console – the PlayStation 4 – consistently out-selling the competing Xbox One in every market both are available. According to Reuters, Sony said on Tuesday that “it was aiming to boost sales for its videogame division by a quarter to as much as 1.6 trillion yen ($13.6 billion).” Sony also plans to raise the money earned per paying user with an increased focus on personalised TV, video and music services.
Sony’s image sensor business, which is part of the company’s devices division, also consistently performs well. Big companies like Apple use Sony’s image sensors in their super-popular iPhones, and Reuters says a lot of Chinese handset manufacturers are starting to use them in their phones as well, something that could boost division revenues by as much as 70%.
The television and mobile divisions, meanwhile, have been losing money hand over fist for years. Sony cites the poor uptake of its Xperia smartphones as a big contributor to the company’s lack of earnings, and said they’ll announce future plans for the division before March of 2015.
Sony’s plans to turn things around will unfold over the next three years, and I am looking forward to seeing what renewed focus on the PlayStation brand will yield for me as a gamer. Investors are confident, as Sony’s share price rose 6% as news of the planned turnaround came out.[Source – Reuters, Image – PlayStationgang]