Sony CEO Kazuo Hirai to Focus on Games, Phones in Companies Turnaround

by William D'Angelo, posted on 12 April 2012 / 4,160 Views

Kazua Hirai, less than two weeks after becoming the CEO of Sony, spoke in his first public briefing. He outlined Sony's new strategy to turn the company around, after four years of being in the red. Sony is set to focus on smartphones, video games and cameras.

"I am determined to transform and revive Sony. This is our only chance to change," said Hirai. "We cannot shy away from difficult decisions," Hirai said referring to the 10,000 job cuts.

Hirai, who revived Sony's gaming business plans to have the division work to his advantage. He wants to raise revenue in the division by one fifth to $12.4 billion over three years. He outlined a plan to integrate its PlayStation Network into all of Sony devices. This will replace Sony's current three online platforms into one unified platform.

Sony's television business has lost money for eight straight years, reaching $10 billion in losses. Sony will offer fewer models and aims to cut its fixed cost by 60 percent and operating cost by 30 percent in the next couple of years.

Hirai wants to make Sony a leading player in mobile phones, who recently bought out Ericsson's half of their smartphone venture for $1.5 billion. He expects revenue for Sony's mobile business to reach $22.2 billion in the next three business years.


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8 Comments

Chark (on 12 April 2012)

Sounds good to me. Concentration is really what they need. Its fine they have various products available in several markets, but if you start counting up how many models they put out there its ridiculous. Operating costs must be enormous. Here's hoping Kaz can pull this off.


SnakeDrake (on 12 April 2012)

Yes, Sony more high quality games.


NightDragon83 (on 14 April 2012)

You know how Sony could make alot of money in their games division right away? Model PSN after XBL and start charging for network-intense activity like online multiplayer and video streaming through Netflix and other apps. You heard it here first if it happens!


duckypwns (on 16 April 2012)

Why would they start focusing on what's important ALL OF A SUDDEN? So they don't focus on - and in fact prioritize - games in anything other than times of desperation? Do they seriously not understand that games are what gaming is about? If you ask me, it's time for Sony to go. That would be cool if they made some quality games beforehand - Only so they wind up on PC one way or another. To people that supported Sony this generation, I have one simple question - Why?


NeoRatt (on 12 April 2012)

This is a high risk business plan, but it is probably the only chance they have to survive as Sony. Kaz is pulling the right strings, but is it too little too late? Time will tell, I hope Sony is competitive because it helps the console market, but, things are bleak after their epic loses this year.


gottalovethis (on 14 April 2012)

Sony missed the boat with the smartphone market, Samsung, HTC are the market leaders now, so Sony will have to work hard to catch up there. Focus on gaming? First job there is to get the Vita moving off the shelf, yet again, the market leader is miles ahead of Sony. Camera market, well that's a free for all, good luck to them with that. All in all, Sony is facing the biggest challenge in its history.


duckypwns (on 15 April 2012)

It's funny how all you said was "Sony is facing their biggest challenge", and your comment got a thumbs down. lol there's really no denying that fact though and trying to censor someone's message isn't going to change anything. Sony IS facing their greatest challenge ever, can anyone honestly name a time they were doing more poorly and faced with greater challenges? No, you can't. =) So here are your options: Either leave a comment and you'll swiftly be proven wrong with numerical facts, or stop trying to censor messages just because of your brand devotion. Brand devotion does not change the facts.


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CGI-Quality (on 16 April 2012)

This article isn't about the PS3 being the issue, nor do Gears/Halo have anything to do with the Sony's losses. Seems you aren't in tune with the info.


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thewastedyouth (on 13 April 2012)

Sony has lost billions on the PS3, it is sad that they make some really amazing PS3 games but they cannot compete against Halo or Gears. Those games just sell insanely well. I love Resistance, Killzone, Uncharted, MGS4 but most of those do not come close to Xbox exclusive titles. Very sad


Comments below voting threshold

wvelting (on 12 April 2012)

Hmmm...Dedicated camera's are all but dead, they've been in last place in console and handheld sales and their phones have no chance against iPhone. Sounds like a real solid business plan....


Aj_habfan (on 12 April 2012)

Pretty much all their electronics are in a bad state currently, does that mean you would just fold the company? Doesn't matter if they are last in sales right now, it's about future potential.


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Ultr (on 12 April 2012)

you must have thought very hard before posting, they said they would focus also on the camera division, playstation is VERY profitable and has a bright future ahead, and you should know by now how fast the business in the smartphone section is changing. You know, people buy new mobilephones nearly every year.. wich is ridiculous, but happens anyway


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green_sky (on 12 April 2012)

The very camera in the phone you are touting (4S) is made by sony.


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VGKing (on 12 April 2012)

Camera's are actually one of Sony's most profitable divisions. I think its right there next to Playstation


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duckypwns (on 13 April 2012)

Wow I think people took this comment way too seriously. I mean the guy has a point to some degree. Most people do not use a dedicated camera, they use the camera in their phone now that phone cameras offer fairly acceptable picture quality as far as the average person is concerned. And there are hundreds of different phones out there, but to be honest, Sony isn't really giving people a reason to pick their phone over the competition's phone. Do you know how many people I've seen with the Xperia? None. They all have Samsung, Motorola, and Apple phones.

Focusing on video games is the only thing I can appreciate about this plan. I think people tend to forget that video games aren't completely about hardware, corporations and business models every now and then. Or at least they forget the main point of video games - which, for us being consumers, is fun. I also have to criticize Sony to a degree, because seriously, shouldn't they have been putting a large degree of focus on gaming all along? What's going to happen when, or more accurately, IF Sony gets their shit together again? Are they going to stop focusing on gaming again now that they don't need to?

And if you think putting that much focus on video games is a bad thing, lol, you just haven't been paying attention to gaming for very long and that's all there is to it. The gaming industry has been larger than the movie industry for a long time now. Like it or not, Nintendo always has weak hardware which still sells because they put a lot of exclusives on it. And now Sony is considering it one of their plans to save their company. If you think focus on gaming - Not just in times of desperation - but IN GENERAL is a bad thing, you are TRULY uninformed.


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NightDragon83 (on 14 April 2012)

@Utlr... "Playstation is very profitable." That's true NOW, but it wasn't so just a few years ago when Sony was losing money hand over fist on every unit sold. The PSP and PS2 were keeping them afloat for the longest time, and this is the reason why PS4 will be evenly matched with Wii U and 720, because Sony isn't going to release another $500-$600 console.


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