Sony announced last Tuesday that they were planning to cut smart phone and television ventures next year in order to consolidate profits. They instead will be focusing on the PlayStation 4 market.
To save costs, Sony is also dropping their sponsorship of the FIFA World Cup.
Sony has been taking a loss with the smart phone and TV market, due to their strong competitors such as Apple and Samsung. Instead of working on the size of the market and their share of it, Sony is instead focusing on a better profit margin. Sony’s chief of the mobile division, Hiroki Totoki, told investors that Sony wanted to turn a profit, even if sales dropped 30 percent in this field.
However, the video game division is comparatively strong. Sony counts on the PlayStation 4 and image sensor businesses to bring in billions of dollars in the next three years. In the video game industry, they are aiming to boost sales by 25 percent, up to $13.6 billion with their new 3-year electronics plan. This plan takes into account the personalized distribution services offered by PlayStation, where individual users can buy videos, television shows, and music. Additionally, Sony predicts that their image sensor department could grow up to $12 billion, since Apple and Chinese manufacturers utilize their products.
What does this mean for the consumer?
It’s hard to say exactly how this will affect the individual user. However, since Sony is focusing so much of their company on their video game department, it seems safe to say that Sony will continue to provide new games, accessories, and products for the PlayStation. Potentially, Sony will up production and content quality, but that’s hard to say at this juncture. At the very least, gamers can rest easy, knowing that even with Sony’s market troubles, they aren’t going to lose the PlayStation.
Published: Nov 29, 2014 11:33 am