Former PlayStation boss now CEO of all of Sony, Kazuo Hirai, has said the company aims to boost operating profits 25-fold within three years by growing its profitable divisions, including camera sensors and PlayStation.
A few days ago Kaz said Sony would stop trying to grow its market share in the mobile phone market. “The strategy starting from the next business year will be about generating profit and investing for growth,” he said in a briefing.
He was also asked if there was a possibility of selling off the mobile phone and TV branches of the company to which he replied that they would not “rule out considering an exit strategy”. Previously Sony have always stated the loss making businesses were not for sale.
It may seem obvious to get rid of the loss making arms but Sony have doggedly hung on to them for far longer than they should have. Many have suggested the management culture of Japan is to blame, how Kaz is cutting through the tradition and bureaucrats is unknown but I would suggest that having been boss of PlayStation and interacting with teams across the world may have helped.
He’s certainly doing a a great job, Sony’s shares have risen 80 percent over the past year and the company is now forecasting an operating profit of at least 500 billion yen ($4.2 billion) for 2017/18, a far cry from a few years ago when we they posting losses in excess of 160 billion yen.
And the reason why we are posting this rather dry business news? Sony want PlayStation to grow, that means chucking more money at it, and that means more games, more services and more fun for us. They might even throw a few quid at the PSN and make it more stable.