Once upon a time Sony was one of those companies that wanted to do everything: phones, tablets, laptops, TV, cameras, music players, headphones, speaker systems… and video games. Nowadays that’s been stripped back, with Sony abandoning laptops, and mostly abandoning tablets. Now Sony is continuing in that vein, focusing on its successful divisions. One of those is the PlayStation division.
Sony’s plan: increase its profit margins 25-fold by focusing on the products that actually make money, whilst pulling back on ones that don’t. Sound business strategy, particularly after Sony recorded its sixth net loss in seven years.
But Sony’s stock is on the rise, growing by 80% in the past year as a result of new CEO Kaz Hirai’s restructuring of core Sony businesses to focus on less products, and making sure those products are the right products. That restructuring will continue.
According to Reuters, it’s all about PlayStations and camera sensors. That’s been Sony’s best bet over the last 12 months, and many see that as the key to Sony’s future profitability.
Interestingly, Hirai stated that Sony would consider exiting the Television market. Sony’s Bravia brand has been a great performer in terms of quality, but Samsung and LG have increasingly cornered that market.
Sony still expects to post a net loss in 2014/15, but a smaller one than previously expected. Sony, as a company, appears to be turning itself around.