After experiencing significant decreases in their profits last year, Sony have now unveiled their new and optimistic 3 year plan that aims to make their tremendous company profitable once again.
During a conference Sony CEO, Kazuo Hirai stated that whilst continuing to pursue their roles in the TV and phone category, this new plan will allow them to achieve their profit goals outside of these areas. Whilst depriving these divisions Sony will put more effort into the PlayStation 4, as well as their camera division in hopes to extend their reach further into the gaming and photography community.
The company will split its businesses into three categories: “Growth driver,” “stable profit generator” and “area focusing on volatility management.”
Sony’s Game & Network Services business, which features PlayStation, will be categorized as a “growth driver.” Sony intends to expand the user base of its console platform and PlayStation Network as part of this plan. Comparatively, its TV and Mobile Communications division will fall into the “volatility management” category.
“Sony will place the highest priority on curtailing risk and securing profits in its operation of these businesses,” according to the note issued.
“Since both markets are experiencing intense cost competition and commoditization, Sony will strive to further increase the added value of its products by leveraging its in-house technologies and component devices. By carefully selecting the territories and product areas it targets, Sony will seek to limit its capital investment and establish a business structure capable of securing stable profits.”
Asked about the TV and mobile phone units, Hirai said he would not “rule out considering an exit strategy”, Sony’s clearest statement to date about the possibility of selling or finding partners for these struggling units.