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Sony to cut TV, Smartphone lineup; sees growth in PlayStation, image sensors

Radec

Member
(Reuters) - Japan's loss-making Sony Corp plans to slash its TV and mobile phone product line-ups to cut costs, counting on multi-billion dollar revenue surges for its buoyant PlayStation 4 and image sensor businesses over the next three years.

Having lost ground to nimbler rivals like Apple Inc and Samsung Electronics Co Ltd in consumer electronics, Sony said on Tuesday its goal for TV and smartphones is to turn a profit, even if sales slide as much as 30 percent.

"We're not aiming for size or market share but better profits," Hiroki Totoki, Sony's newly appointed chief of its mobile division told an investors' conference. A poor showing by its Xperia smartphones has weighed heavily on recent earnings and Sony said more detail on plans for the unit will be unveiled before end-March.

Under its new three-year electronics business plan, Sony said it was aiming to boost sales for its videogame division by a quarter to as much as 1.6 trillion yen ($13.6 billion). It said that will be helped by personalized TV, video and music distribution services that should lift revenue per paying user.

At its devices division, which houses its image sensor business, Sony said sales could increase 70 percent to as much as 1.5 trillion yen. Sony's sensor sales are already robust, with Apple using them in its iPhones while Chinese handset manufacturers are increasingly adopting them.

"There's a lot of expectation for Sony now, but nothing is sure until there are results," said Ichiyoshi Asset Management chief fund manager Akino Mitsushige. "Getting out of the mobile market is an option, but they can't do that now, so they will need to make some fundamental changes."

Read more:
http://www.reuters.com/article/2014/11/25/us-sony-outlook-idUSKCN0J903A20141125

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Under its new three-year electronics business plan, Sony said it was aiming to boost sales for its videogame division by a quarter to as much as 1.6 trillion yen ($13.6 billion)
Hmm, this sounds really good...
It said that will be helped by personalized TV, video and music distribution services that should lift revenue per paying user.
What? Oh god no :(
 
I love their TV's. Their $799 60" has got to be one of the best deals out there right now. My 55" is still kicking after almost 5 years. It's the one division (besides PS4) I hope sticks around. I'm still hurting after they axed the VAIO divison.
 

Begaria

Member
Seems like the Playstation brand is more important than ever to Sony this generation if they're hedging their bets on it.
 

curb

Banned
Seems like the Playstation brand is more important than ever to Sony this generation if they're hedging their bets on it.

Seems a tad risky to me considering they're not even sure why the PS4 is selling so well right now.
 

theDeeDubs

Member
Sony TVs are so overpriced, ain't nobody buying a Sony TV.

I always see this but I don't feel they are that bad. Sony TVs are still my go to TV brand. Not sure what I would get if they completely got out of the TV business to be honest as I'm not a fan of Samsung.
 

McHuj

Member
Too bad for Sony, I mostly like their products. In almost a span of a year, I went from no Sony products to several (PS4, TV, headphones, and BR player).

In terms of styling, gaming lag, and picture quality I much prefer the Sony TV's over Samsung, but luckily I was able to get it on a deal at Fry's because otherwise it wasn't price competitively.
 

Fehyd

Banned
Sony TVs are so overpriced, ain't nobody buying a Sony TV.

Their tvs are actually among some of the best for gaming, and you're not playing the panel lottery like you tend to with a samsung.

Gaming modes have been getting progressively worse on tvs since all people seem to care about is a cheap price, and Sony has been more or less the hold out from that.
 

Begaria

Member
Seems a tad risky to me considering they're not even sure why the PS4 is selling so well right now.

Maybe. This early on, it's hard to tell. However, the PS4 has the leading market share of the consoles right now. If they can capture more Playstation Plus members, broaden their services like Playstation Music/Vue/Now across all of their Sony brands (Vita/PS4/Sony TVs), or third parties (iOS/Android), they might be on to something.
 
D

Deleted member 20920

Unconfirmed Member
I hope they still continue their phone business. Just stop releasing so many different models and focus on a few. And release them timely in important markets like the US, not months later.
 

Tigress

Member
Did you miss all the stuff on PlayStation Vue? Actually sounds cool (provided the price is right)

Seriously. If it's a good enough price I'd consider replacing our cable service with it (not that I have a problem with them but they want out of that market so they keep raising prices. They even have deals to go get tv with Dish network to try to convince people to stop buying tv stuff from them. Not sure why they can't just outright discontinue it but it's very obvious they want to just focus on being an ISP. So I get the feeling I better look for something to replace it. I like Netflix but I would like some sort of service that is airing random stuff throughout the day. I do kinda like that format for just finding stuff to watch. Netflix is better when you know what you want to watch).
 

Turkoop

Banned
Thats a good decision, I'm very satisified with my Bravia TV and Xperia Z2
But i want that Sony focus more than ever on PS Brand
They could be very big when Project morpheus technique and games are qualitative
 
Getting worried about Sony. Putting all there eggs in the ps4 basket. If Ms continues its aggressive pricing Sony are damned if they cut the price and damned if they don't.
 
They needed to cut TV a long time ago considering they inability to compete price wise and quality wise with Samsung.

Fully agree. Samsung Tv's have almost no equal in my eyes. Their tv's have been good to me and I've been brand loyal in return and only recommend Samsung tv's to others who ask me.
 
I don't understand why the Xperia phones aren't doing well. I had a Z1 briefly before it was stolen and I absolutely loved it. The Z3 looks awesome...
 
I really hope they keep coming out with their Z series phones, tho refreshing every 6 months is kinda insane. Would rather see them come out with a new flagship every year, and actually push and support the handsets they produce
 
More power for PlayStation sounds damn good to me.

Sony TVs are so overpriced, ain't nobody buying a Sony TV.
My 80" BRAVIA is fucking awesome and the price was great.
People shouldn't repeat stuff they have heard somewhere on the internet.

Best TV's for gaming!
 
I love their TV's. Their $799 60" has got to be one of the best deals out there right now. My 55" is still kicking after almost 5 years. It's the one division (besides PS4) I hope sticks around. I'm still hurting after they axed the VAIO divison.

If your tv doesn't last 5 years it's a shitty tv. That's nothing to be proud of. That isn't to say I doubt they've turned around their TV business to sell good, high quality products.

I got suckered into one of their VAIOs (2011 SA, the second most exp at the time), and it was hot garbage. Cheap feeling construction, poor battery life, low performant, but at least it had a really, really nice screen on it!

It's good to see them focus their efforts and clean up the product line. When they make a high quality product, it's often times fantastic. Some of their cameras are quite spectacular. I would have gotten on of the NEXes except for the lens platform.
 
Did you miss all the stuff on PlayStation Vue? Actually sounds cool (provided the price is right)

Nope I saw it, I just don't have any faith that they'll handle it any better than PlayStation Now. That quote also makes it sound like their plan is to milk PS4 owners with non-gaming related services which I thought we hated around these parts.

I wanted to hear that they were planning on raising revenue by making the PS4 a more successful gaming platform honestly.
 

vpance

Member
DualShockers has the slides that detail that top-level business strategy for SCEI in the short-to-mid term.

It's pretty reasonable, actually.

PS+ subs quadrupled since launch and PS will make them boatloads in 3 years. And Japanese pubs love Vita, were my 2 main takeaways from the presentation.
 

daveo42

Banned
Their TV division is hurting because the quality difference now isn't near as much as it was 10 years ago between a Sony and an off-brand. Hell, Vizio has come into its own over the past few years and it started as a cheap off-brand and is now becoming a strong competitor in the TV market. Sony can't just compete on image quality, but also with price.

As for phones, it would help if their flagship phones were released to a wider audience. I would have picked up a Z2 day one if I had the chance, but it never came. They need to be able to release their new handsets and get them in the hands of as many people as possible. Sony also needs to slow its roll on how fast they release them, as the Z4 is coming early next year when we were just waiting on seeing the Z2 stateside in May of this year.
 
Fully agree. Samsung Tv's have almost no equal in my eyes. Their tv's have been good to me and I've been brand loyal in return and only recommend Samsung tv's to others who ask me.

I bought a high end Samsung TV a few years ago, absolutely useless for gaming. Horrific input lag.

Still has a fantastic image quality to this day though.
 
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