Sony Is Betting On PlayStation, Not Phones Or TVs, To Make Money

Sony Is Betting On PlayStation, Not Phones Or TVs, To Make Money

PlayStation is Sony’s big money-spinner, but the company’s Bravia flatscreen displays and Xperia smartphones are not nearly as successful. In the future, you might not see Sony TVs and Sony smartphones on the shelves and in the display cabinets of your local electronics store.

A Reuters report quotes Sony global CEO Kaz Hirai as saying the company would “no longer pursue sales growth in areas such as smartphones”, and would not rule out “considering an exit strategy” for both TVs and mobiles. Whether this is a draw-down or a complete spin-off as happened to the company’s VAIO notebook division is not clear.

Instead, Sony will shift its focus onto creating and producing camera sensors, PlayStation products and its entertainment arm and is aiming for a net profit of 500 billion yen ($5.38 billion) in the 2017-18 financial year — a 25-fold increase on the 20 billion yen ($215 million) it posted for FY2014-15. It’s unlikely that Sony will pull out completely of TVs and smartphones within Australia at least in the short term, but will probably consolidate its product range into a few key models for each.

In Australia, Sony is a lesser known force in smartphones compared to the giants of Samsung and Apple, although its Xperia Z3 and Z3 Compact remain highly regarded and a successor Z4 is widely expected to be announced within weeks. It’s more than competitive in televisions, though, with a BRAVIA line-up heavily skewed to next-gen 4K Ultra HD technology and a focus on premium features like Hi-Res Audio and high quality integrated speakers.

We’ve reached out to Sony Australia for an official comment. [Reuters]