Sony to put all focus on Playstation, plans to exit TV and Smartphone

[Argonaut]

http://www.gamnesia.com/news/sony-puts-all-focus-on-playstation-plans-exit-tv-and-smartphone-markets#.VOd8AfmsUcA

 

"In an attempt to increase their profits by 25% by 2018, Sony CEO Kaz Hirai said in a recent press release that the company is going to focus almost entirely on the PlayStation brand and their camera sensors.

According to a recent report from Reuters, the Sony boss also outlined an exit strategy for leaving the once successful television and smartphone markets, where they've recently suffered from intense competition from Samsung, Apple, and cheap Chinese manufacturers.

This shift in focus makes sense, as Sony has been an absolutely dominating force in the video game market. The PlayStation 4 has been the highest selling console on the market for nearly every month since its release in November 2013."

 

From Reuters:

 

"Sony would instead focus its spending on more profitable businesses such as camera sensors, videogames and entertainment as it seeks to return to growth after forecasting for this financial year its sixth net loss in seven years.

The comments, made just as the Tokyo market was closing, helped Sony's shares (SNE.N) rise 1.4 percent in New York.

 

He also said Sony aimed to post an operating profit of at least 500 billion yen ($4.2 billion) for 2017/18, a jump from the 20 billion yen forecast for the year ending March 31."

 

Do you think this is a good move by Sony or is there still untapped potential left in the markets that they're binning?

 

[Th3MaN1]

Well, when it comes to TV's and smartphones, there are better companies than Sony. But this doesn't feel like the right choice. I don't know if relying on one thing to bring more money than before is a logical step.

 

If they do this, and don't f*ck up, they will become much bigger. With a bigger investment in gaming, I'm expecting more exclusives, and even more content when it comes to the console itself.

Since I don't really give a f*ck about TV's and smartphones, I'm happy about this. Have no idea if this is best for business.

[nath22]

Sony have been making crazy losses on everything except Playstation so it makes sense if it happens but I don't think they'll turn into a strictly gaming thing, that's worked out great for Nintendo and Sega hasn't it?

[Spaghetti Cat]

Whoa, this is news. Shame because SONY makes some great T.V.'s. Expensive yes, but well made and good looking. Hopefully they'll still continue to make other electronics.

[Th3MaN1]

that's worked out great for Nintendo and Sega hasn't it?

Ehh... Sonic Boom?

[Creed Bratton]

No loss. Plenty of TV and phone manufacturers out there. I think this is a good decision. PS4 is doing well so far, but Dx12 and Windows 10 will make Xbone a bit more competitive, so Sony needs to be on their guard and try to counter any advantage Microsoft might end up getting.

[GTA3Rockstar]

They already left the computer industry, they might as well leave everything else since their products were so overpriced compared to the competition.

 

I bet they won't make it past 2018 as a business. The Playstation won't keep them in business.

 

As well as their fanboys.

Edited February 20, 2015 by GTA3Rockstar

[Stormingz]

Imo this isn't a good move, I can see Sony going bust in the future.

[Flachbau]

Hell nah. They should exit the TV industry, but not the smart phone industry. People love the Xperia line up, because of the performance it gives and also because of their elegant designs..

[Eurotrash]

It's their only product that's still selling, so yeah.

 

They should ditch the movie market too. They haven't made anything good in a while.

Edited February 20, 2015 by Eurotrash

[GTA3Rockstar]

They should ditch the movie market too. They haven't made anything good in a while.

 

Nah, that's their mojo. Especially since they are the ones with blu-ray rights, they should just stick to Playstation and movies.

[Zoobz]

It's their only product that's still selling, so yeah.

 

They should ditch the movie market too. They haven't made anything good in a while.

They're not going to ditch the movie market. They make way to much money.

 

$1,578,707,099 from the last 5 Spiderman movies alone.

 

http://boxofficemojo.com/franchises/chart/?id=spiderman.htm

 

The rest of the movies and Box Office sales.

 

http://boxofficemojo.com/studio/chart/?studio=sony.htm

Edited February 20, 2015 by Zoobz

[Vanzant]

This is just my opinion here, but Sanyo beats Sony in the Television product market in every way.

[MikeyBelic]

rip shawshank redemption

[NYC PATROL]

Damn.... I wish they would stick with making at least one TV model.

[MyName'sJeff]

The Xperia Z3 sh*ts on all phones on the market right now, except the note 4. Z3 is extremely fast and optimized, last 2 days on battery life, gaming is extremely smooth, camera is excellent, water resistant, remote play and solid hardware. Personally, I think it could have looked much better, but aside that, it could have been the perfect android phone. Z, Z1 and Z2 are amazing as well.

 

Other than that, perfect. If they just focus on the PS division and make immense profit in the next 5-10 years, they might be able to open up another division and see what they can do. Back to making the phones would be a good start.

[Eurotrash]

 

They should ditch the movie market too. They haven't made anything good in a while.

 

Nah, that's their mojo. Especially since they are the ones with blu-ray rights, they should just stick to Playstation and movies.

 

Good point.

[AboveAndBeyoncé]

Eh I'm glad they are focusing on ps4 they need to.... First they need to come out with a Slim Version of a ps4 lol

[xoC18H21NO3xo]

This is bad news for me personally. I love my Vaio, despite the bloatware that came with it. My TV is Sony also. Before all of these gadgets, there used to be the boombox/portable radio and I had a Sony radio. I took it to the beach and got it wet, it still worked up until the day someone stole it from me on Dead tour. Had it for eleven years at that point. They're putting all of their eggs into one basket is not a wise move.

[Eurotrash]

Eh I'm glad they are focusing on ps4 they need to.... First they need to come out with a Slim Version of a ps4 lol

 

One would think that the first thing PS4 owners would want is the elimination of the mandatory subscription service

[Mr Rabbit]

Given how some of their other ventures are killing them as a company and created this massive loss for years now. then this is a right thing to do, not the best thing. They have about £700m loss (converted from yen, net after tax) for 2013/4. Selling off some under-performing branches might help them survive, but I wouldn't advise putting all their eggs in one basket, but TV and smartphones, get out samsung have you beat in both and apple in smartphones as well.

 

Or buy Samsung.

 

They have other things outside these 2 industries and gaming, so I doubt they are actually getting rid of everything, maybe title is a wee misleading, that would be crazy. Their film company is making plenty of profits, as is music.

 

Something does need to be done their before tax profits last year were a third of a percent of sales revenue, they are pissing too much money away with not enough return across the board. Mobiles and Home entertainment (TVs, stereos not Playstations) meade nearly a $1bn operating loss between them. Gaming actually made a wee loss of $71m.

 

This was the year ending march 2014, thought I should edit in that mention so this year gaming might see a profit

 

http://www.sony.net/SonyInfo/IR/financial/fr/13q4_sony.pdf- source for my ramblings

Edited February 22, 2015 by Mr Rabbit

[Saikou]

It's a shame the Xperia branding isn't really popular,I loved the design and those phones

[Vertighost]

How's Project Morpheus going at the moment? maybe they are getting ready to compete with the Rift.

[Nick1020]

They shouldn't give up on the Xperia line. Those phones have amazing battery life. If only Sony realized they ain't Apple.

[Coin]

It makes perfect sense for Sony to ditch the elements of their portfolio that were hemorrhaging money. They probably should have made the decision sooner, but better late than never.

[Ai®a©ob®a]

Since they are doing this i'd like to see what they will do with the handheld gaming market too.

 

I love my PS Vita with the PS4 remote play but it could be better, Hope they have plans for something better in the future since they will be focusing on gaming.

[utack]

They make some of the few decent Smarphones, they better keep on doing that

[GTA3Rockstar]

How's Project Morpheus going at the moment? maybe they are getting ready to compete with the Rift.

 

It won't. Rift will be focused on computer gaming, while theirs will be PS4.

 

 

Since they are doing this i'd like to see what they will do with the handheld gaming market too.

 

I love my PS Vita with the PS4 remote play but it could be better, Hope they have plans for something better in the future since they will be focusing on gaming.

 

I don't think they will. Nintendo has the hold on mobile gaming but that's not saying much since there's Android/iSO gaming out there that is really the main buzz.