[Global Technology Reporter Wang Huan] According to a report by Japan’s Kyodo News on May 26th, Sony’s company has lost its loss-making structure. For the fiscal year 2016, the net profit and loss of the consolidated statements have been profitable for two consecutive years due to the outstanding performance of the gaming division. FY17 is also expected to ensure profitability due to the recovery of the semiconductor business, which had previously been unclear. However, in recent years, Sony has not launched a landmark hot product like the portable music player "Walkman". Can it create a new product and technology for the complete "resurrection"? The company is ushering in a crucial moment.
Since the 2008 fiscal year, Sony has not been profitable for two consecutive years. Until the turnaround of the 2015 financial year, the company cut its personnel, sold computer "VAIO", and divest its main businesses such as Walkman to set up its subsidiaries. It repeatedly implemented structural reforms.
In fiscal 2016, Sony’s semiconductor factory suffered losses due to the Kumamoto earthquake, and the film business also included more than 100 billion yen (approximately RMB 6.2 billion) in impairment losses. The adverse factors were more; but the overall performance was affected by the home consoles. PlayStation4 has good sales support. The "PSVR," which was able to experience virtual reality (VR) and sold last year, was also well received. Sony also re-entered the thin-TV market, which uses the next-generation panel "organic EL", to strengthen its offensive.
Sony expects net profit for fiscal year 2017 to be 255 billion yen. Semiconductor sales to China's smart phone manufacturers are expected to increase substantially, and the company has set a target of “operating profits†that reflects the profitability of its main business to 500 billion yen, which is the highest in nearly 20 years. President Kazui Hirai noted with excitement that "will continue to achieve high returns."
On the other hand, due to the fluctuating market demand for semiconductors, the creation of new businesses using artificial intelligence (AI) and robotics technology is also a top priority, but Hirai avoided the mention of specific business ideas in the May 23 business policy briefing. Professor Nagao Kiyoshi, a professor at the Waseda University Graduate School, who is familiar with the business strategy, pointed out that "(Sony) has not yet indicated specific cases. Market participants are not satisfied with it. They should be able to demonstrate straightforward directions as soon as possible."
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