Sony Notes PlayStation Growth as it Downsizes TV and Smartphone Lineups
Sony might be winning the current-gen console war, but it's losing its grip on the television and smartphone markets.
Reuters reports that Sony intends to cut down on its product lines of television and smartphones to try and negate its ongoing losses in these markets. At the same time, Sony is banking on the multi-billion dollar revenue it is gaining from its PlayStation 4 and its image sensor technology (cameras, webcams, video cameras, smartphone cameras, etc.) businesses. The company's image sensors are already used in Apple's iPhones and in a multitude of popular cellphone lines throughout China. Sony used to be dominant in the television market, which has now become saturated with dozens of competing manufacturers. Sony's cellphone sales have been on the decline over the past decade, especially from high-end competition like Apple and Samsung overshadowing the company's Xperia line by a huge margin.
Sony is aiming to grow its video game division by as much as $13.6 billion over the next three years. It intends to offer personalized video, music and TV distribution services to consumers in order to help fund this increase. On the other hand, Sony has been laying off workers across its multiple subsidiary developer studios across the globe over the past year.
"There's a lot of expectation for Sony now, but nothing is sure until there are results," said Akino Mitsushige, chief fund manageter at Ichiyoshi Asset Management. "Getting out of the mobile market is an option, but they can't do that now, so they will need to make some fundamental changes."