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Finance

Hirai refocuses Sony on games and mobile

Hirai refocuses Sony on games and mobile

Thu 12 Apr 2012 8:21am GMT / 4:21am EDT / 1:21am PDT
HardwareFinance

New president and CEO unveils One Sony plan at strategy presentation

Sony Computer Entertainment

Sony Computer Entertainment is a Japanese videogame company specialising in a variety of areas in the...

playstation.com

In his first official outing as president and CEO, Kaz Hirai has refocused Sony on gaming and confirmed the 10,000 lay offs reported earlier this week.

Hirai was keen to push the One Sony, One Management plan, which would see the company focusing on mobile, digital imaging and its games software and hardware.

"By growing these three businesses, Sony aims to generate approximately 70 per cent of total sales and 85 per cent of operating income for the entire electronics business from these categories by FY14 [2013/2014]," said Sony in an official statement following the presentation.

Sony hopes to generate 1 trillion (7.74 billion) in game business sales and an operating income margin of 8 per cent by FY14, and reported its current hardware sales as profitable.

"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."

"These will form the foundations on which Sony will target further sales and profit expansion in the game business.

The statement promised more investment and technology development for the sector, with more downloadable games and subscription services and building on its PlayStation Suite brand.

On a less positive note the statement also confirmed that by March 2013 the company would cut 10,000 employees, across the company and its subsidiaries.

"This includes employees expected to transfer outside the Sony Group as part of the sale of businesses and other realignments resulting from business portfolio optimisation. Sony anticipates that many of these businesses will have future growth opportunities outside the Sony Group, and Sony will consider various measures to secure continuity of employment for employees at their new destinations."

5 Comments

Jim Webb
Executive Editor/Community Director

2,232 2,161 1.0
Considering the 2014 operating profit targets of those business segments, one can assume the PS4 will need to be sold at a profit from day 1.

Posted:2 years ago

#1

Private
Industry

1,176 182 0.2
Well if the rumors are correct that should be possible, a big part of the 600 euro price tag when still selling at a loss of the ps3 at launch was due to the R&D costs and production of cell, if they use AMD parts that would bring those costs down considerably. I still think the cell chip is very powerful as shown by the 1st party devs of Sony, unfortunately the architecture doesn`t lend itself to harnessing that power easily.

Posted:2 years ago

#2

Private
Industry

1,176 182 0.2
Till this day I stand firm on the fact that 600 wasn`t such a high price given what hardware you got compared what you got for 400 with the 360. The problem is if you sell your console for 600 and you still loose money on every unit.

I don`t believe in cheap consoles sell and expensive once don`t given that 360 and PS3 are more or less equal in units sold going by the life time numbers and the PS3 was always the more expensive one with launching a year later.

I don`t mind paying 200 more if it means I have 6-7 years until I have to upgrade to the next console instead of paying less and it`s 4-5 years. Besides I don`t why people always only talk about graphics, and forget that all that power is also needed for better AI, physics, larger more complex levels, more detailed models that in turn allow for better animations.

Posted:2 years ago

#3

Murray Lorden
Game Designer & Developer

199 72 0.4
I think they've been REALLY smart to go with Android as the platform for their new gaming phones.

And their new SmartWatch is another interesting idea, leveraging Android. I think that's a wise choice, strengthening their own position, and Google's at the same time. Better to join together, if you want to keep up with Apple, than to try your entirely separate plan.

Murray
Indie Game Developer
http://www.muzboz.com

Posted:2 years ago

#4

Rick Lopez
Illustrator, Graphic Designer

1,269 941 0.7
PS4 needs to be sold at a profit since day 1. Dont release a console with technology no one uses or can afford. I dont care about 3D, much less high resolution 3D or a screen that can have over 4000p resolution. I only just bought an HDTV now.

Posted:2 years ago

#5

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