Sony has laid out plans to spin off its video and sound sectors to give the company more autonomy, while slimming down its core business to make it more agile.
Sony CEO Kazuo Hirai says his company projects the moves will see Sony's operating profits increase 25-fold by 2018.
Sony forecasts operating profits of 500 billion yen ($4.2 billion) in operating costs at the close of the year ending in 2018. That's 25 times the 20 billion yen in operating profits it expects to report at the end of the year ending on Mar. 31.
"If our initial mid-term corporate strategy was about reforms, the second mid-term strategy starting from the next business year will be about generating profit and investing for growth," Hirai stated at a briefing in Tokyo.
The other part of its strategy will see it place more focus on its successful film, games and music units. Pounded by rivals in the TV and smartphone market, Sony may also give up on the sectors altogether.
There was ambiguity about the future of smartphones in the remarks made by Hirai, as the Sony CEO outlined his company's strategy for the next three years.
Self-described as late comers to the market, Sony's smartphone business has been able to turn a profit, and it looks like it is about to negate another $1.83 billion of the company's revenue at the close of the fiscal year.
Hirai mentioned "devices" along with the company's film and music and games business, but that term can be used to describe a wide range of products Sony offers. Products he confirmed to fall into that devices category include Sony's cameras, storage and sensor products.
Analysts have long suggested that Sony should consider giving up on TVs, along with smartphones, and selling them before the unit sees an 11th year in the red. During his press conference in Tokyo, Hirai said the sale of Sony's TV business is undoubtedly an option for the company.
"It's not that we aren't thinking about partnering or selling to other firms at all ... Depending on the situation, we'll have to consider (such options)," Hirai stated.
To gauge the success of its spinning and slimming strategy, Hirai said Sony will look for at least a 10 percent return on equity, and it seeks to meet its forecasts by the close of the year ending in 2018.
"Separating our business units will make cooperating with other companies, restructuring, acquisitions and attributing responsibility much easier," Hirai stated. "Image sensors, games, movies and music are the areas that will drive sales and profit growth."
