PC sales and profits have nosedived in the past few years and most PC vendors have either started producing mobile devices or run into losses. Sony is now shutting down its PC division to focus on more profitable areas such as PlayStation.
Sony’s decision to ditch the PC industry is very significant since the tech giant has been in the game for decades. Sony released its first PC back in 1982 and has been releasing news models, including notebooks, until very recently. One of Sony’s rather popular recent offerings in the PC arena is the Vaio line-up.
But now, the company is bailing out on PC to focus more on its profitable products such as the PlayStation, and mobile devices such as smartphones and tablets. Sony also says that it plans to pour in extra efforts into its TV arm and turn the division around back to profitability.
In the current financial year, the PC or TV business are not expected to make any profits, says Sony. According to the company, “Following a comprehensive analysis of factors, including the drastic changes in the global PC industry, the company has determined that concentrating its mobile product line-up on smartphones and tablets and transferring its PC business to a new company established by JIP is the optimal solution.”
The company has also predicted that during the current financial year, it stands to incur a loss of some 110 billion yen. Although the PlayStation 4 has been a massive success, the game console’s profitability has done little to alleviate the overall losses of the company.
The decision to ax the PC division of Sony will result in a loss of 3% of the company’s total work force. In actual numbers, that translates to a total of 5,000 jobs that will be lost including 1500 in Japan and 3500 overseas.