Menu
Sony looks to PlayStation to revive fortunes, could ditch smartphones

Sony looks to PlayStation to revive fortunes, could ditch smartphones

Sony continues to spin off struggling divisions, including its video and audio business

Sony will invest more money in the PlayStation as it fights to return to a profit, and could reportedly exit from selling smartphones and TVs.

Sony will pump extra cash into its games and network services division in a bid to attract more users to the PlayStation and its PlayStation Network of online games. The company has sold 18.5 million PlayStation 4s since they went on sale in late 2013, of which 4.1 million were sold in the 2014 holiday season.

Sony will also provide more funding for the division that makes image sensors for devices including the iPhone 6. That cash will go towards researching new technologies and increasing production.

It's part of a wider set of changes underway at Sony, which has already sold off its Vaio PC business and is showing less and less interest in hardware. Along with the gaming and imaging divisions, it sees its biggest growth drivers as movies, music and TV production.

Sony announced a turnaround plan on Wednesday aimed at producing ¥500 billion (US$4.2 billion) in profit by 2017. It will invest in divisions that can boost its bottom line and get rid of businesses that aren't as profitable. The electronics and entertainment giant has suffered a string of loses recently, including a ¥128 billion loss for its last fiscal year.

Sony will also spin off its video-and-audio business into a wholly owned subsidiary, the same strategy it used last year for TVs. Separating the businesses allows them to focus on turning a profit.

Other business will be split from the parent company, Sony said, but it didn't provide details.

For now, Sony is keeping its mobile communications segment, which will post a loss of ¥215 billion for the year to March 31 and see 2,100 jobs cut. But according to news reports, CEO Kazuo Hirai isn't ruling out an "exit strategy" for phones and TVs, markets that Sony described as volatile and competitive.

Image sensors and the PlayStation helped Sony lower its predicted loss for this fiscal year. In its most recent earnings report,, the company forecast a loss of ¥170 billion for the year, down from the ¥230 billion loss it predicted in October.

Sony will give its music division more money to explore streaming services. In January, it ended its own streaming service and partnered with Spotify to develop a new offering called PlayStation Music. That service allows PlayStation users to stream music while playing games.

Fred O'Connor writes about IT careers and health IT for The IDG News Service. Follow Fred on Twitter at @fredjoconnor. Fred's e-mail address is fred_o'connor@idg.com

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags business issuesconsumer electronicsgamessony

Featured

Slideshows

Educating from the epicentre - Why distributors are the pulse checkers of the channel

Educating from the epicentre - Why distributors are the pulse checkers of the channel

​As the channel changes and industry voices deepen, the need for clarity and insight heightens. Market misconceptions talk of an “under pressure” distribution space, with competitors in that fateful “race for relevance” across New Zealand. Amidst the cliched assumptions however, distribution is once again showing its strength, as a force to be listened to, rather than questioned. Traditionally, the role was born out of a need for vendors and resellers to find one another, acting as a bridge between the testing lab and the marketplace. Yet despite new technologies and business approaches shaking the channel to its very core, distributors remain tied to the epicentre - providing the voice of reason amidst a seismic industry shift. In looking across both sides of the vendor and partner fences, the middle concept of the three-tier chain remains centrally placed to understand the metrics of two differing worlds, as the continual pulse checkers of the local channel. This exclusive Reseller News Roundtable, in association with Dicker Data and rhipe, examined the pivotal role of distribution in understanding the health of the channel, educating from the epicentre as the market transforms at a rapid rate.

Educating from the epicentre - Why distributors are the pulse checkers of the channel
Kiwi channel reunites as After Hours kicks off 2017

Kiwi channel reunites as After Hours kicks off 2017

After Hours made a welcome return to the channel social calendar last night, with a bumper crowd of distributors, vendors and resellers descending on The Jefferson in Auckland to kickstart 2017. Photos by Maria Stefina.

Kiwi channel reunites as After Hours kicks off 2017
Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow Electronics introduced Tenable Network Security to local resellers in Sydney last week, officially launching the distributor's latest security partnership across Australia and New Zealand. Representing the first direct distribution agreement locally for Tenable specifically, the deal sees Arrow deliver security solutions directly to mid-market and enterprise channel partners on both sides of the Tasman.

Arrow exclusively introduces Tenable Network Security to A/NZ channel
Show Comments