Sony focusing on games to revitalize

Technology giant introduces "One Sony" plan aiming to help company return to profitabilty with focus on game business unit; 10,000 layoffs confirmed.

Sony will focus in part on games to help the company return to profitability, the technology giant announced today, after it was reported the firm would suffer a $6.4 billion full-year net loss and cut as many as 10,000 jobs.

Sony is looking to games to turn the ship around

Titled the "One Sony" approach, the initiative plans to focus Sony's efforts on its three core business units: digital imaging, game, and mobile. The company's plan is to generate about 70 percent of total sales and 85 percent of operating income from these business sectors by fiscal 2014.

In the game unit, Sony said it plans to continue to deliver "exhilarating entertainment experiences" for the PlayStation 3 and PlayStation Vita, as well as leverage its other gaming endeavors like accessories and peripherals. Sony will also aim to increase sales by adding new titles and subscription services to the PlayStation Network.

Additionally, Sony will beef up the slate of PlayStation Suite devices and content in an effort to spur sales. In sum, Sony said it is targeting its game business to record ¥1 trillion ($12.33 billion) and an operating income margin of 8 percent by fiscal 2014.

Outside of gaming, the company's One Sony plan aims to bolster sales by restructuring its television sector, expanding its business opportunities in emerging markets like India and Mexico, creating all-new businesses, and realigning its portfolio and optimizing resources.

Elsewhere in the One Sony plan, Sony confirmed it had cut 10,000 jobs, with the total bill for restructuring costs estimated to total ¥75 billion ($930 million).

Written By

Eddie Makuch is a news editor at GameSpot, and would like to see the Whalers return to Hartford.

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Discussion

6 comments
pixelpusher66
pixelpusher66

I think Sony's biggest problem is they don't focus enough on the developers. The PS3 is a lot harder to program for than the Xbox 360. Since the xbox 360 is based on directx it is much easier for developers to program on plus it gives them cross platform functionality with with PCs. The whole playstation suite thing is a day late a dollar short. There is a lot higher entry requirement to start developing for the PS3 whereas almost anyone can start building a game on the 360. After all at the end of the day it's the games that sell systems, and the developers make the games.   

xXxIRyanxXx
xXxIRyanxXx

How about they get Square Enix to make Kingdom Hearts 3, and bring back Star Wars Battlefront, people loved these games and were probably some of the highest selling on ps2, so not putting them on ps3 was a stupid move, and bringing them back would help with sales.

Tekcor
Tekcor

I like Sony equipment. My entire home theater is Sony. But I feel ashamed to give them any money because their customer service is beyond terrible.

 

They have a whole lot of problems to fix.

swyg
swyg

The funny thing is Sony can afford to lose a lot in their game division.  Sony makes much, much, MUCH more money off their TVs and other products.

sixerjones
sixerjones

 @swyg Dude, they ain't making any money off of anything. Ever single fanboy like me are praying they stay in business. If you read into the looming banking crisis, the Iranian war you'll be be lucky to see another Uncharted let alone PS4. I'm telling all of you there gonna jam out the PS4 soon or your not gonna see it at all. If Israel starts bombing Iran(probable)and the 2nd recession hits(probable)after Christmas we all will have alot more to worry about than Kratos next adventure. The industry is already crashing(LOOK AT VIDEO GAME SALES/VG CHARTZ)I'm just waiting for the massive price drop on all games. I have enough games to last me for years that I haven't played. Understand, Sony hasn't even officially confirmed the PS4 and if they put out another version of the PS3 you won't see it until after Iran becomes a parking lot!!

IanNottinghamX
IanNottinghamX

 @sixerjones if Israel bombs Iran we would have a lot more to worry about than just games.......Remember Iran has nukes....USA nukes...