Sony Spins Off Sound + Video Business
The move is part of a three-year turnaround plan to speed up decision-making and to help Sony find the road back to profitability.
The Japanese company believe that they can achieve revenues of $4.2 billion.
The Company claims the issues going forward are not sales but “profitability”.
“The Sony spirit is about doing what others didn’t dare to do” Chief Executive Kazuo Hirai said Wednesday in outlining the company’s strategy.
Sony spun off its TV unit last year and exited the personal computer business.
Sony is expecting a loss of 170 billion yen ($1.4 billion) for the fiscal year through March. It had a 40 billion yen loss last fiscal year.
Sony said it still sees its film division as a driver of growth. It has said it does not expect long-term damage from the cyberattack that became public in December, over a Sony Pictures movie called The Interview which spoofs an assassination of North Korean leader Kim Jong Un.
The film has been released in independent theatres and through Internet outlets.
Sony must not be afraid to change if it hoped “to grow in a Sony-like way,” Hirai told reporters at the Japanese electronics and Entertainment Company’s Tokyo head office.
Hirai pointed to image sensors that are used in devices such as smartphones and self-parking cars, entertainment operations such as film, music, TV programming and the PlayStation game business as potential areas for growth.
The video-and-sound unit will become more independent by October, he said. Other parts of Sony’s sprawling empire may also be spun off, such as computer chips and batteries, but details were not yet decided, said Hirai.
Sony will also invest in innovative areas, including through acquisitions and partnerships, although he didn’t announce specific deals, according to Hirai.