Sony announces three-year plan to return to profitability

PanARMENIAN.Net - Sony has devised a three-year plan to return to profitability following consecutive quarters of heavy losses, Digital Spy reveals.

The electronics giant will grant its divisions greater autonomy in a bid to generate 500 billion yen ($ 4.17 bn) in earnings by 2017.

Each of the company's divisions has been lumped into one of three categories - 'growth driver', 'stable profit generator' or 'area focusing on volatility management'.

The PlayStation brand is central to Sony's plans following the commercial success of the PS4, which has sold more than 18.5 million units since launch.

With this in mind, the company has placed its Game & Network Services business into the 'growth driver' category, along with Devices (CMOS image sensors), Pictures and Music.

Sony's camera business has been filed under 'stable profit generator' along with Video & Sound, but its troubled smartphone and TV divisions were classed as 'volatility management' areas.

The company plans to scale back operations in these sectors, and is rumoured to have considered offloading them entirely.

"Since both markets are experiencing intense cost competition and commoditisation, Sony will strive to further increase the added value of its products by leveraging its in-house technologies and component devices," said Sony in a statement.

"By carefully selecting the territories and product areas it targets, Sony will seek to limit its capital investment and establish a business structure capable of securing stable profits."

Sony head Kaz Hirai is believed to be under pressure to reverse the firm's fortunes, with a sixth overall loss in seven years forecast for the current fiscal year.