Sony’s discarded technology is finding new life, with former employees spinning out startups based on projects the Japanese giant decided to shut down.

Among them is Tokyo-based Augment AI, led by Teppei Tsushima (pictured below), which has revived Sony’s Wena smartwatch business.

The company is developing the Wena X, a smartwatch system built around the wristband rather than the watch face. It allows users to turn existing mechanical watches into smartwatches by attaching the band.

Sony had not released a new Wena product since 2020 and formally ended the business in February.

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Tsushima, who first developed the concept through an internal Sony competition, acquired the trademark and patents before leaving to launch Augment AI with three former colleagues.

The startup has already raised about 540 million yen (A$5.1 million) through crowdfunding, more than 50 times its target, and is planning a second round.

Another Sony spinout, Scale Photonics, is commercialising chip-sized laser technology developed by former Sony researcher Masanao Kamata.

The laser, small enough to fit on a chip, could be used in wearable health devices, including smartwatch-based blood analysis, as well as mobile robots and advanced distance sensors.

Sony discontinued the laser project last December as its semiconductor business focused on image sensors.

Scale Photonics was founded in January and began selling samples in June after securing investment from Silicon Catalyst Japan.

The trend highlights a growing willingness among large technology companies to let abandoned internal projects continue outside their walls.

Sony executives have publicly backed the spinouts, with president and CEO Hiroki Totoki saying Augment AI reflected the company’s manufacturing spirit moving to “the next stage”.

The approach could also benefit Sony long-term, with successful former in-house projects potentially returning as partners rather than buried research.