We recently reported that Sony was set to restructure – and that the Japanese giant’s financial troubles would lead to them culling staff by as many as 10 000 heads.
Sony’s unfortunately confirmed that they will indeed be sending thousands of people to the unemployment lines – but there’s a silver lining in it for gamers, as the company will focus its interests on just three areas – and one of them is video games.
“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.”
Sony highlighted the PlayStation 3, the PlayStation Vita and the newly renamed Sony Entertainment Network as the foundations of its game business – which it’ll be building on.
"In the game business, Sony continues to deliver exhilarating entertainment experiences through PlayStation 3, PlayStation Vita, and its unique combination of hardware, software, PlayStation Network (PSN) and range of accessories and peripherals," declared Sony, remaining mum on the prospect of next-gen, also failing to mention the now rather profitable PSP.
“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.”
Mobile, gaming and digital imaging are the three business that keep Sony afloat and which they’ll be focused on – so what of its ailing TV division?
Kaz intends on making the division – which has failed to make any money for the last 8 years – profitable again, largely by expanding into emerging global markets. Will that mean cheaper Bravias for South Africa?
As part of the new “One Sony” ethos, the company will ‘realign the business portfolio and optimise resources’ – restructuring headquarters and subsidiaries, and selling off some of its businesses.
“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 – though it has also said it’ll do all it can to secure employment for those affected.
Sony’s new president and CEO, former Sony Computer Entertainment Boss Kazuo Hirai has a tough time ahead of him; but hopefully this restructuring effort brings Sony back to black – because a world without PlayStation is a world I don’t want to live in.
Last Updated: April 12, 2012