The lights are on
Sony is estimating a $1.1 billion loss for the fiscal year ending March 31, 2014. In anticipation, the company has revealed measures to address expenses, including significant layoffs across the company.
These layoffs, which represent about one-third of that division’s total staff, are part of the 5,000 jobs the company plans to eliminate worldwide. The layoffs are anticipated by calendar year end. Additionally, 20 Sony stores in the United States will be shuttered, with 11 remaining.
Sony will be shedding its PC division, and will reportedly increase focus on digital imaging, high end audio, and professional grade gear. The turnaround is expected to leverage existing strengths in hardware (like televisions), content (Sony Pictures), and gaming (PlayStation).
Our TakeSony’s intent to use gaming as one pillar of its turnaround speaks volumes about the power of PlayStation 4. Sony is off to a strong start, especially as it is largely unchallenged in the service component. PlayStation Plus is a powerful motivator, and would be a reasonable consideration that would sway someone toward Sony’s console over the competition.