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Sony leans on its PlayStation business as it searches for profitability

Sony leans on its PlayStation business as it searches for profitability

November 25, 2014 | By Mike Rose




Sony today outlined its plans to swing its business back to profits -- and its PlayStation and video game exploits feature heavily in those plans.

Sony has been making losses for a while now, mainly due to poor performance from its television and mobile divisions. In comparison, its video game business has been doing rather well, especially thanks to the launch of the PlayStation 4.

Today Sony posted its financial targets for the next few years, outlining a plan to dial down home entertainment and mobile sales, in favor of boosting its video game revenues.

Right now, the company's PlayStation business is making annual revenue of around 1.3 trillion yen ($11.0 billion), with an operating margin of 2.7 percent. Sony wants to boost that up to annual revenues of as much as 1.6 trillion yen ($13.6 billion) by 2018, with a more solid operating margin of around 5.5 percent.

Meanwhile the company plans to majorly scale back its mobile business, which is currently recording large-scale losses, and reduce its TV business down -- and that plan also includes making the businesses more profitable through better sales margins.

"We're not aiming for size or market share but better profits," Sony's Hiroki Totoki told an investors' conference, as reported by Reuters.


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