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 newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags business issuessonygamesconsumer electronics

Featured

Slideshows

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

More than 500 channel leaders gathered in Auckland on 21 October at the ​Reseller News Innovation Awards ​2020 to celebrate the achievements of the New Zealand technology industry's top partners, start-ups, vendors, distributors and individuals.

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners
Meet the winners of the 2020 Reseller News Innovation Awards

Meet the winners of the 2020 Reseller News Innovation Awards

Reseller News honoured the standout players of the New Zealand channel in front of more than 500 technology leaders in Auckland on 21 October, recognising the achievements of top partners, start-ups, vendors, distributors and individuals.

Meet the winners of the 2020 Reseller News Innovation Awards
Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Show Comments