Sony 2000 Annual Report Download - page 22

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SONY CORPORATION ANNUAL REPORT 2000
20
The Core Technology & Network Company (CNC) encompasses semiconductors, storage
media, batteries, electronic components, computer peripherals, circuit boards, factory auto-
mation systems, and related businesses. During the year under review, CNC worked with Sony
Computer Entertainment to initiate volume production of several key devices for PlayStation 2,
including the critical semiconductor Graphics Synthesizer image rendering engine as well as a
dual-wavelength semiconductor laser and an optical pickup, both of which are compatible
with the DVD and CD formats. In addition, sales of semiconductors for digital AV products and
CD-R/RW drives for computers were strong. Seeking to raise efficiency in existing businesses,
CNC decided to entrust the production of CD-ROM drives to OEM suppliers and to outsource
production of alkaline batteries to FDK Corporation.
Steps are being taken to heighten CNC’s competitive edge in optical pickups, charge-coupled
devices (CCD), and other sectors where the company ranks among the world’s leading suppli-
ers. At the same time, CNC is working at selecting and focusing its businesses and bolstering
operations in existing product sectors. Plans call for improving profitability by aggressively stepping
up the supply of products for both internal and
external use. Another goal of CNC is to supply the
key next-generation devices needed to make AV
products for digital networks more appealing. In
these ways, CNC is determined to play a role in
increasing shareholder value for the Sony Group.
The Communication System Solutions Network
Company (CSNC) was formed in October 1999 from
the integration of the Broadcasting & Professional
Systems Company (B&P) and the Digital Network
Solutions (DNS) unit. CSNC unifies two valuable
resources: the technical and marketing expertise
that B&P had built up over many years in the
broadcast- and professional-use video equipment
market, and the expertise of DNS in networking
and distribution platform technologies and network
services. CSNC intends to strengthen its current
businesses while developing new broadband net-
work businesses.
In broadcast-use video equipment, Sony is the
acknowledged industry leader around the world.
Sony offers a complete lineup of systems covering
everything from acquisition of images to editing and
transmitting. During the year under review, CSNC
received a ¥1.7 billion order from NBC, one of the four big U.S. TV networks, for digital broad-
casting equipment including MPEG IMX video tape recorders (VTR). CSNC also received orders
from Bayerischer Rundfunk of Germany and Osterreichischer Rundfunk of Austria for various
Introduced during the year, this top of the line Wega
color TV with a flat-surface CRT has been an enormous
success in the U.S. Sony is striving to expand the prod-
uct lineup of the Wega series worldwide.