Sony intends to return to the path of profits by betting on entertainment

The Japanese multinational will segregate its consumer audiovisual electronics division from its parent company in order to improve its autonomy, management and financial performance.

Kazuo Hirai, president and CEO of Sony, announced this Thursday that the Japanese company will focus its efforts on the entertainment divisions in order to get back on track with profits.

As part of a strategic plan for the next three years, Sony will segregate its audiovisual electronics division in order to improve its autonomy, management and financial performance, hoping to overcome the losses it entered in 2013.

In 2018, the Tokyo-based company aims to achieve a profitability ratio (ROE) of more than 10 percent and an operating profit of more than 500 billion yen (3,679 million euros).

To achieve that goal, it will place special emphasis on the areas of video games and network services, music, movies and electronic devices, in which it will make “aggressive capital investments,” according to Hirai.

In terms of audiovisuals, Sony intends to expand its offer of audiovisual content, both through film production and distribution as well as on television and the Internet.

In the video game area, Sony will enhance the possibility of network interaction between PlayStation 4 users.

As part of the strategic plan, Sony has chosen to separate its audiovisual electronics production division from the parent company, with a view to improving its autonomy, management capacity and financial performance. The spin-off will take place next October and represents a new step in the company's restructuring process, after in 2014 it got rid of its television manufacturing branch, which was in the red for a decade.

Sony's consumer electronics business has hampered its performance in recent years, so the company's new strategy seems finally aimed at solving this problem.

Finally, it should be noted that, among other objectives, the multinational will deploy all possible resources to promote the development of CMOS sensors.