Sony has decided that in an effort to stem their financial losses, it should pare down their TV and Smartphone product line ups and focus their efforts on PlayStation 4. According to Reuters, Sony investors in the Japanese electronics giant were briefed on the company’s three year plan to turn a corner and increase revenue. With Sony’s Xperia smartphone falling short of expectations because competing products from Samsung and Apple eating up the market share, Sony set the lofty goal for their flailing smartphone and TV lineups to turn a profit. As the freshly appointed chief of Sony’s mobile division Hiroki Totoki told investors, “We’re not aiming for size or market share but better profits.”
So with their mobile devices and TV products unlikely to turn a significant profit within the next three years, how is Sony planning on recouping their losses and becoming profitable? The newly unveiled plan points to PlayStation 4 and their image sensors to lift sagging profits.
Gamers are not surprised that PlayStation 4 is Sony’s big hope since they have been faring quite well by selling nearly 14 million consoles since the end of September this year. Sony believes that PlayStation 4, PlayStation Plus and the rest of their mighty video game division will see a jump in sales thanks to entertainment distribution raising revenues through user subscriptions.
How will the image sensors infuse some much needed capital into Sony’s bottom line? The image sensors, part of Sony’s devices division, has already been posting strong sales since they are currently utilized in iPhones with countless Chinese smartphone manufacturers following Apple’s lead. In fact, Sony is so confident in their image sensors that at the investors conference, they said their devices division could see a 70% lift in sales thanks to the image sensors.
Do you think Sony is wise to back away from the mobile device and television markets in light of the disappointing performance of recent releases like the Sony Xperia? Or do you think it is a risky move for Sony to hinge so much of their profit on image sensors and the PlayStation empire? All opinions about their decision aside, it is clear that it is time for Sony to act if they want to maintain their foothold in the world of consumer electronics and manufacturing.