Sony to slash TV, smartphone lineup to cut costs

The company is counting on multi-billion dollar revenue surges for its buoyant PlayStation 4 and image sensor businesses

We already know that Sony’s PS4 has been doing exceptionally well and it out-did the Xbox One in almost all comparisons which have been made this year but is doing THAT well that the Japanese company has decided to rely solely on the revenue brought into the company by the gaming console? Well, it appears this is most likely the case. Japan’s loss-making Sony Corp has decided to slash its TV as well as mobile phone product line in hope to cut costs and it will be relying merely on the multi-billion dollar revenue surges for its buoyant PlayStation 4 along with its sensor businesses for at least the next three years.

The company has been hit hard by tough competition which it constantly faces from the likes of Apple and Samsung and on Tuesday it declared that the goal for TV and smartphones is to turn a profit, even if sales slide as much as 30 percent. Hiroki Totoki, Sony’s newly appointed chief of its mobile division told an investors’ conference that “We’re not aiming for size or market share but better profits.”

The company’s Xperia phones have failed to deliver that consumers are generally looking for in a phone of that caliber and this has had its effects on the company’s recent earnings. As part of this cost cutting strategy, Sony is also not going to carry on with the FIFA soccer sponsorship contract renewal next year.

source: reuters