In an attempt to become profitable once again, Sony has decided to spin off its audio and video branches and no longer excludes the possibility of selling its onerous smartphone branch as well.
Demise of a monument
CEO Kazuo Hirai stated that the Japanese electronics giant would spin off its audio and video branch by October 2015. It is just another step in the company's "trimming", after it had already parted ways with its television branch and privatized its computer division under its Vaio brand. The CEO also said the company will "keep all of its options open" when it comes to its onerous smartphone branch.
Years ago Sony dominated these product branches, like with the Walkman, but the company has lost huge parts of its market share to competitors like Samsung and LG. It has never been able to slow down its demise, let alone regain any market share.
Focus on gaming, music and movies
"Our strategy, from the next fiscal year onward, is to focus on generating profit and to invest in growth", Hirai said. That is why the company will shift its focus to gaming, movies and image sensors, which it already produces for Apple, among other parties. It also feels self-driving cars are a possible route to take, while Hirai has placed a lot of faith in his own successful PlayStation department.
Investors have reacted positively to this new strategy, as it could multiply profits by 25 compared to its current position. For this fiscal year, with full results published at a later time, Sony expects a net loss. Over the next three years, Hirai feels an operational profit of more than 500 billion yen (3 billion euro) should be feasible.