Most of the businesses around the world are facing losses. This is particularly leading businesses to either consider acquisitions, mergers, or joint ventures. Some businesses are facing losses to the extent of being bankrupt.
Sony is one such business that stands at a point today reconsidering its operations and digging in to increase sales of its products.
Due to losses in the battery business Sony Corp has decided to focus on its battery business. This has led to a greater disappointment among the game console fans who were waiting for the launch of PlayStation 4 along with its virtual reality headset.
Over the years Sony had shifted its focus on video games, camera sensors, consumer electronics and the battery business. But unfortunately, Sony has faced losses in the battery business. Sony now forecasts a 270 billion yen operating profits in March. However, there has been an 8 percent decline from the previous year’s forecasted profits.
It has faced a lower estimate presented by Starmine Smart Estimate, which was around 308.65 billion yen derived from 27 different brokerages. Nevertheless, business analysts are of the view that gaming consoles have a brisk sale, eventually, an increase in the overall profits are expected. The analysts have pointed out that this boost in sales and profits can only occur by revamping the consoles during the shopping season. Furthermore, it is advised to take steps till the year end, in order to attract the correct audiences.
Sony unfurled its PlayStation VR headset and promised the production of image sensors, but once they have met the smart phone demand. However, Sony has announced its sale of battery business to Murata Manufacturing for 17.5 billion yen along with booking a charge of worth of 33 billion yen in relation to the sales. Sony will be selling Sony Energy Devices Corp which manufactures; lithium-ion polymer batteries, these batteries are used in smart phones, digital cameras and tablets, hence these are rechargeable batteries. Murata Manufacturing says that they want to have energy business as the core means of venture, and sees the growth and expansion in this particular business. Furthermore, this will help Murata grow in the communications market as well as health care and energy markets. It’s necessary to pinpoint here that the Sony will continue to operate USB and alkaline batteries as well as other products.
However, it will announce on Tuesday its results and details on a full year outlook.