Sony has wasted no time in shifting their unprofitable computing division, striking a deal for their VAIO brand with Japanese Industrial Partners. The deal will conclude by the end of March this year. The company had only announced on Wednesday of this week that a sale could be a possibility.
Amongst the major reform taking place within the company, Sony has also announced that they are reforming their TV arm. It will be split into a standalone entity and made a subsidiary of Sony by June.
The Japanese tech giants have seen a disastrous drop in both demand and turnover from computer and laptop sales in their Q3 2013 financial reports, and decided to take drastic action as a result. Sony has now ceased R&D on PC products, and will soon cease manufacture once the latest VAIO range rolls out. This change in focus will allow them to concentrate their efforts on tablets and smartphones – areas which have reaped them significantly greater rewards.
Oddly, despite year-on-year sales increases from their mobile arm, last fiscal year’s projected £181.35m profit in reality turned out to be a £665m loss. Action clearly needed to be taken.
Positively, the launch of the PlayStation 4 has seen a ‘dramatic’ increase in PlayStation Plus subscriptions, largely thanks to the system’s new paid online multiplayer model.
The changes at Sony will see 5,000 jobs cut, and a promise of a 5% of the new VAIO company’s capital as an investment to ensure a smooth transition.