Sony Is Back, Expected To Swing A Profit

As new fiscal years are starting, Sony has recently released the assessment of the previous fiscal year when it reportedly lost 1.06 billion dollars, translated in a net loss of 126 billion yen until March 2015. The trend is downward from a loss of 128.4 billion yen just one year ago.

The fiscal year that started with April 1, 2015 promises to hold increased success for the company, Sony expecting a net profit of 140 billion yen and an operating profit of 320 billion yen. The sales are estimated at a 7.9 trillion yen for this fiscal year.

Hideki Yasuda, Ace Research Institute Analyst, commented that:

“The target of operating profit is conservative. Investors expected too much so Sony is trying to lower their expectations.”

Kazuo Hirai, the Chief Executive Officer of Sony explained that this year the company will be focusing on cutting costs and further advancing in those businesses where Sony already has a clear head start, in a bid to regain shareholder confidence.

That is good news as the share stock has reached its highest point since 2008 this month, with the shares’ value increasing more than 30 percent.

Referring to the businesses where Sony displays a clear advantage, the gaming industry and the electronic devices hold a clear high place. Sony PlayStation4 game console reportedly sold twice as many units as Microsoft’s XboxOne, making the last generation console the undisputable leader in the market.

To take full advantage of the spoils offered by the console, Sony introduced it to China, the world’s biggest gaming market, thus surging the revenues. At the same time, Sony plans to strengthen its game streaming service. North America can enjoy PlayStationNow due to the purchase of patents of OnLive.

The electronic devices business is a game changer for Sony as well, the emphasis falling on image sensors. The picture division now boasts the upcoming release of the latest Bond movie – Spectre.

In total, a 17 percent increase in sales has been reported, and due to Mr. Hirai’s call to sell Sony’s PC business, halt smartphone development in China and putting the Xperia line on hold, as well as separating the TV manufacturing business.

In an interview with the Wall Street Journal, Mr. Hirai summed up the philosophy of Sony:

„I think that whether we are talking about the Japanese market or markets overseas, whether it’s Sony or any other company, whether they are Japanese or not, so long as they are bringing out products that are innovative, that are differentiated, that stand above the competition in this world of commoditized products—if we are able to have products that tick all those boxes, then certainly, including Sony, we should definitely be in the consumer product space, and we should be able to do it in a very profitable manner”.

Image Source: www.ibtimes.co.uk

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Matthew Slotkin

Matthew Slotkin has graduated from Rice University with a degree in History and English. He worked as an assistant professor before joining The Mirror Daily as a full time writer.