Friday, February 7, 2014

Sony Stepping Out of PC Game, Cutting 5,000 Jobs

by Nick Dowell

Sony has announced they are cutting off their entire VAIO PC business, which is to be sold to Japan Industrial Partners (JIP). Instead of focusing on PCs, the company has decided to concentrate on its mobile production lineup of smartphones and tablets.

This move will come at the cost of about 5,000 layoffs within the company as well as a move of the company’s TV business into a separate unit. In the same vein, approximately 250-300 of Sony employees are expected to be hired by the new company created by JIP.

As part of the transfer, Sony has said in a press release that they will “cease planning, design, and development of PC products. Manufacturing and sales will be discontinued after the Spring 2014 lineup to be launched globally.”
           
Sony has also stated that even after they withdraw from the PC market, customers who own VAIO PCs will continue to receive aftercare customer services.

It seems Sony’s motivation for this change is the expected net loss of $1.1 billion by the end of the fiscal year ending in 2014.

Despite the losses fueling this move, Sony has seen some positive growth in their gaming division, which can be tied to the launch of the release of the Playstation 4 in November of last year, which had sold 4.2 million units as of December 28 of last year. With that, the company has also seen some growth in its mobile market.

How will Sony’s increased focus to their gaming, mobile, and TV divisions affect their future profits? While only time will tell, hopefully it means fans of the company can see some new innovations coming to their favorite products.

Photo credit: DigitalTrends.com


---------------------- 
Follow me on Twitter @IAmTheWeregoose.