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Kaz layouts his plan for the future of Sony


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New CEO Kazuo Hirai has revealed Sony’s strategic plans to dig back out of several successive loss years, focusing on core businesses and making significant cuts.

 

“Sony is positioning digital imaging, game and mobile as the three main focus areas of its electronics business and plans to concentrate investment and technology development resources in these areas,” the company said in a press release.

“By growing these three businesses, Sony aims to generate approximately 70% of total sales and 85% of operating income for the entire electronics business from these categories by FY14.”

 

In the gaming stream, Sony highlighted the PlayStation 3, Vita and PlayStation Network as its core platforms, failing to mention the aging but still viable PSP whatsoever, in conjunction with “accessories and peripherals”.

 

“The Company also aims to increase sales by enriching its catalog of downloadable game titles and subscription services available through the PSN platform, and also by expanding the lineup of PlayStation Suite compatible devices and content,” it said.

 

“Sony will target game business sales of one trillion yen and operating income margin of 8% by FY14.”

 

In addition to refocusing on three successful streams, Sony intends to ‘turn around’ its ailing TV line; expand into emerging global markets; and launch new businesses.

 

Finally, it intends to ‘realign the business portfolio and optimize resources’ – restructuring headquarters and subsidiaries.

 

“As a result of these measures, Sony estimates that the headcount across the entire Sony Group will be reduced by approximately 10,000 in FY12,” the company confirmed.

 

The total number of layoffs includes staff expected to end up part of external companies and subsidiaries as Sony realigns its corporate structure, and will “consider various measures to secure continuity of employment for employees at their new destinations”.

 

The restructuring is expected to cost ¥75 billion yen during FY12, but Sony is targeting sales of ¥6 trillion with an operating income margin of 5% in its electronics business, in FY14.

 

http://www.vg247.com/2012/04/12/sony...0000-lay-offs/

 

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Good luck to kaz and sony, i do hope this plan be a success.

 

a step in the right direction

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Is gaming a right place to focus on given that its usually netting losses?

Or are they that confident on the PS4?

 

(I speak with almost no knowledge here)

That you do, gaming is one of their profitable department.

They're losing money on the TV department.

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Is gaming a right place to focus on given that its usually netting losses?

Or are they that confident on the PS4?

 

 

(I speak with almost no knowledge here)

That's one of the few departments where Sony is making profit ..

The others are Sony Music and Sony Pictures (The most profitable ones)

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It has been profitable in the last 2 years.

 

and @ zodax

 

They will focus on crystal led

It was profitable since PS1 years only ..

They lost money after failed PS3 launch

 

Investing in OLED tech is again a massive failure on their part ..

OLED screens are very costly to make and the cost increases exponentially as the size of the screen increases .

Samsung can invest in it coz their TV business is printing money ..

 

On.the other hand Sharp is investing in IGZO screens which are better than LED but cheaper to make as compared to OLEDs

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I hope before dying it either gives the PlayStation brand autonomy or sells it to an awesome company.

 

(For the record that does not include Apple or Microsoft )

There are rumors that Apple is entering the console business ..

Buying Playstation division would be the best choice for Apple ..

 

While on the other hand let Sony die a peaceful death :lol:

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“Sony is positioning digital imaging, game and mobile as the three main focus areas of its electronics business and plans to concentrate investment and technology development resources in these areas,” the company said in a press release.

 

Seems like a smart decision. They need to dump their delusions of being Apple. Their laptops, tablets and TVs are all WAY overpriced above the competition and dont have anything to justify that kind of extra price.

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