According to a recent report by Reuters, Sony intends to reduce spending costs by slashing into its TV and mobile phone product lines – pinning their revenue hopes on PlayStation 4.
Sony isn’t getting out of the TV and mobile business entirely. “We’re not aiming for size or market share but better profits,” says Hiroki Totoki, Sony’s recently appointed chief of its mobile division. Sony has lost a lot of ground to mobile kings like Apple and Samsung, and a lackluster showing from its Xperia line of mobile handsets hasn’t done much to give its phone business a boost.
Though Sony is cutting funding for its TV and mobile divisions, it is focusing on increasing sales for its video game division by ¥1.6 trillion ($13.6 billion). The company has stated that personalized TV, video, and music distribution will also contribute to this hefty goal.
The bulk of Sony’s capital over the last year has come from robust sales of the PlayStation 4, which has sold 13.5 million units worldwide as of September 30, 2014. With the holiday season in full swing, that number is sure to increase – though Microsoft might be closing the sales gap.
According to Reuters, after this announcement Sony’s shares closed 6% higher at the close of business on Tuesday – so it’s possible that this is the correct direction for the corporation to embark on.