By this time next year, the Sony you and I know could operate very differently thanks to a completely new shift in strategy. According to Sony boss Kaz Hirai, the Japanese company is considering exiting a few keys markets, including mobile and TV. It’s the second time in as many months Sony has hinted at its intentions to do so.
Sony has struggled to find a significant audience in the crowded mobile world, overshadowed by larger rivals while being undercut by Chinese competitors. But it’s not all doom and gloom.
As part of the new strategy, Sony would put more emphasis on its camera business, along with video games and entertainment. These units would be given even more independence to make their own business decisions, hopefully returning Sony to profitability. Sony recently forecasted its sixth net loss in seven years.
“The strategy starting from the next business year will be about generating profit and investing for growth,” Hirai said.
Hirai didn’t explicitly state Sony would ditch the mobile and TV markets, but he did admit the company hasn’t ruled out the possibility of an exit strategy. Sony has trimmed the fat before, axing thousands of jobs while selling off its well-respected computer division. It also announced its intentions to bail on the eReader market last summer. The PlayStation 4 has been one of Sony’s brighter spots, which is why the company voiced intentions on doubling down.
As part of Sony’s larger restructuring plans, the company said it hopes to improve the return on equity for shareholders over the next three years, as well as posting an operating profit of at least $4.2 billion for 2017/18.