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Sony Targeting Profit Jump Under Three-Year Strategy

Sony Targeting Profit Jump Under Three-Year StrategyUnder the strategy, Sony stated it is positioning its devices, game and network services, pictures, and music segments to drive profit growth.

In aid of this, Sony will look to further expand the installed user base of the PlayStation platform and PlayStation Network, and aim for further growth in CMOS image sensors, investing to increase production capacity, and enhancing research and development.

Sony will focus on expanding the audience for its media networks business by growing ratings and increasing its channel offering, strengthening its television production business, and improving margins in its motion picture business, while in music it will increase its focus on growth areas such as the streaming music market.

Sony noted its TV and mobile communications businesses “operate in markets characterised by high volatility and challenging competitive landscapes”, stating it will place the “highest priority on curtailing risk and securing profits in its operation of these businesses”.

As reported by Reuters, Sony CEO Kazuo Hirai has not ruled out an exit from the smartphone and TV businesses.

“If our initial mid-term corporate strategy was about reforms, the second mid-term strategy starting from the next business year will be about generating profit and investing for growth,” Reuters reported Hirai as stating.

Sony stated it is targeting October 1 next year to commence the next stage of its TV business reorganisation, splitting out its video and sound business unit, launching it as a self-sustained, wholly owned subsidiary.

Sony added it also intends to move forward with preparations for splitting out other business units, while for units already operating as subsidiaries, it will move to further increase their levels of autonomy.

At the beginning of the month, Sony reported a year-on-year rise in sales and operating revenue for the third quarter, up 6.1 per cent, while forecasting operating income of 20 million yen for the fiscal year ending March 31.