Sony’s new CEO Kaz Hirai has detailed the strategy the company needs to turn things around. For those who don’t know, Sony has posted losses these past few years and Hirai aims to rectify that by focusing on the company’s image, games and mobile divisions.
Sony has issued this statement (via a press release).
Sony is positioning digital imaging, game and mobile as the three main focus areas of its electronics business and plans to concentrate investment and technology development resources in these areas.
By growing these three businesses, Sony aims to generate approximately 70% of total sales and 85% of operating income for the entire electronics business from these categories by FY14.
In the gaming sector, Sony has outlined the PlayStation 3, PlayStation Vita and the PlayStation Network as its core platforms. The firm also aims to increase sales by “enriching its catalog of downloadable game titles and subscription services available through the PSN platform and also by expanding the lineup of PlayStation Suite compatible devices and content.”
This new strategy of Sony, called the “One Sony” approach, aims to bring the company to profitability once again. Sony is targeting its game business to record ¥1 trillion (12.33 billion) with an operating income margin of 8 percent by fiscal 2014.
Due to this restructuring, Sony will also be laying-off 10,000 jobs across the entire Sony Group, but Sony will “consider various measures to secure continuity of employment for employees at their new destinations.” The total cost for this employee restructuring is an estimated ¥75 billion ($930 million).
Outside of the gaming sector, Sony will also be restructuring its television sector to turn things around by expanding into emerging global markets and creating new businesses altogether.
Hopefully, Hirai can bring the same level of success to Sony as he did with the PlayStation brand name.