Sony Turns to PlayStation for Profits, Might Spin-off Other Businesses

Sony CEO Kazuo Hirai has a new plan to achieve profitability, and that plan heavily involves PlayStation. Hirai aims to boost operating profit 25-fold thanks to the success of the company’s gaming branch, it’s Sony Pictures branch, and it’s high-quality camera sensors. This plan could also mean exiting the TV and smartphone business if worse comes to worse.

Speaking at a briefing, Hirai said he wouldn’t rule out spinning off, or outright selling their TV and smartphone businesses. Simply put, Apple and Samsung hold dominance in the phone market, and it doesn’t make sense to dump millions of dollars into building fantastic phones that don’t sell. It’s a similar situation with the TV business. There are too many competitors also creating high-quality devices.

PlayStation is the last great hardware that Sony makes, and it’s doing well. The PS4 is closing in on 20 million units sold worldwide in just a little over a year, and far ahead of its competition. It’s high-quality camera sensors are found in every Apple iPhone, and provide the company with much needed cash. Finally, there’s Sony Pictures, which was the victim of hacking last winter, which didn’t do all too well last year. However, a deal between Sony and Marvel that sees both companies share Spider-Man could be that branch’s key to profitability.

Sony is aiming for an operating profit of at least 500 billion yen ($4.2 billion) for 2017/18. Hopefully, all these steps will be enough to turn the company around after seven years of losses.

Thanks, Reuters!