Tokyo, Japan: Japanese electronics and entertainment company Sony has announced a strategic pivot towards fostering creativity in movies, animation, and video games, moving away from its historical emphasis on consumer electronics.
Kenichiro Yoshida, Sony’s chief executive, outlined this new direction in a strategic briefing held on Thursday. He emphasized that Sony aims to support creative professionals in delivering what he termed “kando” — a Japanese word signifying a moving and emotional experience.
Yoshida refrained from commenting on recent reports suggesting that Tokyo-based Sony and Apollo Global Management might be interested in acquiring Paramount Global. Instead, his focus was on elucidating Sony’s new strategy which underscores the creative process rather than the once-celebrated products such as the Walkman portable music player and Trinitron color televisions.
“We will continue to support people’s creativity through our technology,” Yoshida stated during the online briefing.
Sony has been adapting to the challenging market landscape, where competitors are producing cheaper but high-quality electronics. Critics have pointed out that delving into movies, music, and other entertainment sectors can sometimes be financially risky. However, Sony remains steadfast in its new direction.
Investments in Creativity:
- Acquisition of EMI Music Publishing: In 2018, Sony made a significant investment by acquiring EMI Music Publishing, marking the beginning of a robust strategy to strengthen its content creation capabilities.
- Crunchyroll Acquisition: In 2021, Sony acquired Crunchyroll, a global leader in Japanese animation with over 13 million paid subscribers. This acquisition allowed Sony to deliver Japanese animation to a broader audience.
- Support for Innovative Artists: Sony supports artists like Yoasobi, a Japanese music duo utilizing Vocaloid technology (singing voice synthesizer software), which has gained a global following.
Yoshida highlighted that the synergies Sony seeks are now based on intellectual property that spans across animation, music, games, and films, rather than the previous integration of entertainment and electronics.
Technological Advancements:
- Real-Time Computing Technology: Sony’s advancements in real-time computing technology are being utilized in various fields. For instance, their cameras used in sports events can capture fast-moving subjects without distortion, enhancing live broadcasting quality.
- Applications in Media: This technology is also crucial in news coverage, editing, 3D video production, and computer graphics, playing a significant role in hit movies like “Godzilla Minus One” and in video games based on human athletes’ movements.
Sony’s recent financial performance reflects the company’s ongoing transformation and adaptation to its new strategic focus.
Sony Financial Summary (Latest Quarter):
| Metric | Value (in Yen) | Value (in RM) |
|---|---|---|
| Quarterly Profit | 189 billion | 5.6 billion |
| Quarterly Sales | 3.48 trillion | 103 billion |
| Fiscal Year Profit Decline | 3% decline to 970 billion | 29.2 billion |
Key Financial Highlights:
- Sony reported a rise in quarterly profit to 189 billion yen (RM5.6 billion) from 141 billion yen the previous year.
- Quarterly sales for Sony, the maker of PlayStation game machines, increased by 14% to 3.48 trillion yen (RM103 billion).
- However, the company recorded a 3% decline in profit for the fiscal year ending March, totaling 970 billion yen (RM29.2 billion). This decline is attributed to a weaker performance in its financial services segment, which is set to be partially spun off next year.
Sony’s shift towards emphasizing creativity and the creative process in its business strategy marks a significant transformation from its past focus on consumer electronics. With substantial investments in content creation and technological advancements that support creative professionals, Sony is positioning itself as a leader in the entertainment industry. Despite the financial challenges and critics’ concerns about profitability in the entertainment sector, Sony remains committed to delivering moving experiences through its diverse range of intellectual properties.
By fostering innovation and supporting creative talents globally, Sony continues to evolve and adapt to the changing market dynamics, ensuring its relevance and competitiveness in the years to come.