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Sony: Cuts Working, Expects Huge 3D Sales By ‘13

– Sony’s cost cutting has begun to work and it is targeting huge sales from 3D-related
technologies by March 2013, when it expects to again be profitable.

Howard Stringer, chairman, CEO and president of Sony, said in an
analysts meeting, held here Thursday, that its streamlined business structure
has “boosted efficiency and saved money.” He said it is it is 80 percent near
its goal of 330 billion yen in company-wide cost reductions that are scheduled
for its current fiscal year, which ends March 31, 2010.

The plan, which was put into effect after the company reported a
net loss of $1.01 billion for its fiscal year has broken its electronics
businesses into three segments: consumer products and devices, networked
products and services, and B2B and disc manufacturing.

Stringer said Sony has been making “fundamental changes …
driving costs out of the company to right-size the company [by] closing
facilities and reducing headcount.” He added, “Our forecast for our full year
[ending March 31, 2010] is improved, but we have more work to do.”

Sony is targeting revenue from 3D-related products of more than 1
trillion yen (excluding content) in the fiscal year ending March 31, 2013.

This explains why Stringer said Sony has a “unique position with
3D”-related businesses, given its assets from content production to display
devices and game to make available a wide variety of attractive content and
hardware, and drive the creation of new 3D markets.

In a company statement for the conference, Sony said it will
launch 3D-related products for the home, including TV, Blu-ray Disc
players/recorders and 3D gaming on PlayStation3 in the fiscal year ending March
31, 2011.

And it will provide solutions for 3D content production,
distribution and theatrical projection to lead the field in broadcast and
professional businesses.

To enhance profitability Sony is centering on four initiatives:

• target consistent profitability in core hardware businesses
(TV, game and digital imaging);

• provide new user experiences integrating innovative hardware,
software and services;

• reach out to new customers and develop new geographic markets;

• increase Sony’s focus on environmentally conscious products and

Through these measures, Sony is targeting an annual 5 percent
operating income margin and a 10 percent return on equity by the end of the
fiscal year ending March 31, 2013.

Sony is targeting consistent profitability in core hardware
businesses (TV, game and digital imaging). It also wants to regain the leading
market position in LCD TV business and target returning the LCD TV business to
profitability in the fiscal year ending March 31, 2011 and achieving a 20
percent worldwide market share on a unit basis in the fiscal year ending March
31, 2013.

In the game business, its goal is to return to profitability by the
fiscal year ending March 31, 2011 by expanding PlayStation Network services and
cutting costs.

In digital imaging, the goal is to “maintain leading position as
the No. 1 digital imaging brand in the world” via product differentiation and
cost competitiveness.

Sony feels it is also in a strong position to provide more
networked hardware and software services, via PlayStation Network, integrating
CE and mobile hardware and content to generate 300 billion yen from networked