When someone thinks of "Sony," they will most likely think about the PlayStation. And how could they not? The video game console (in its various forms) has been around for years now, and has become one of the company's most profitable brands, if not the most profitable.
So, when Sony announces plans to further back the PlayStation brand, while also stepping back from other areas like smartphones, it doesn't come as that big of a shock. Supporting the thing that's currently doing better than everything else is just a good idea, regardless of the business or situation. When it comes to Sony and the PS4, high sales for the current-gen system have already helped put the company on the path to success, and just last month, Sony revealed the PS4 sold 18.5 million units.
As Reuters reports, Sony CEO Kaz Hirai announced the company's decision to shift focus earlier today, with the aim being to boost profits 25-fold within three years; expectations are currently set at reaching a minimum of ¥500 billion ($4.20bn) by the end of fiscal year 2017, or March 31, 2018.
Sony's plans involve cutting back on its efforts when it comes to performances in the smartphone market, where the Japanese company is no match for the likes of Apple (with its impressive iPhone 6 sales) and Samsung, and will instead take steps to further improve its businesses surrounding camera sensors, video games and entertainment. Hirai noted that this also includes music streaming, and expanding the overall reach of the PlayStation Network. Today's announcements further explain the move from Music Unlimited to a partnership with Spotify, and PSN being used to cover all of Sony's entertainment services.
"The strategy starting from the next business year will be about generating profit and investing for growth."
As for Sony's TV business, which has also been falling behind, Hirai stated that he had yet to "rule out considering an exit strategy." The company sold off its VAIO PC brand last year, and current speculation is that the TV business will go the same way alongside mobile production.
With Sony now going all in with the PlayStation, it'll be interesting to see how this affects the PlayStation TV and the PlayStation Vita, two products that appear to be on the verge of being left behind themselves. And as development continues on the ambitious Project Morpheus, the company could very well increase its profits, provided it debuts the hardware with proper marketing and the right price. Sony wants to make this happen by 2018, and we'll just have to wait and see how close it comes to hitting its goal.