Sony 2002 Annual Report Download - page 4

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2
Sony Corporation Annual Report 2002
Review of Performance in the Year Ended March 2002 (Fiscal Year 2001)
The business environment during Fiscal Year 2001 was an especially challenging one, with the
collapse of the IT bubble and the impact of the terrorist attacks in the U.S. causing the world
economy to stagnate. Sony had no choice but to revise downward, twice, the performance
forecast we made at the beginning of the year.
Despite the severe operating climate, consolidated sales increased 3.6% compared with the
previous year, mostly attributable to the depreciation of the yen and a large increase in sales of the
Game segment. On the other hand, operating income of the Group as a whole decreased 40.3%
year on year, with the Electronics segment experiencing a significant drop in income despite an
increase in Game segment income.
In terms of restructuring, we were able to achieve a year ahead of schedule the headcount and
manufacturing facility reduction targets we announced at our Corporate Strategy Meeting in
March 1999.
Furthermore, in October 2001 we established a joint venture with Ericsson of Sweden for our
mobile phone handset business, and we announced our decision to take Aiwa Co., Ltd. private in
October 2002. These and other actions made the 2001 Fiscal Year a year in which we responded
to many concerns raised by shareholders and investors.
Sony Group’s Management Strategy
Sony is working to build an environment in which individuals can enjoy their favorite content and
services whenever and wherever they want, by 2005, the year in which we believe the broadband
network era will achieve critical mass.
To make this new world a reality, we have positioned three business domains – Electronics,
Game, and Content – as core sectors that will form the nucleus of business at Sony Group, and we
have concentrated management resources in these areas.
In anticipation of the broadband network era, each core sector with its own mission, will
enhance Sony’s competitiveness by increasing both economic value and brand value. Aiming to
make our Electronics business number one in the field of network consumer electronics, we will
introduce hardware products that are especially attractive at home and on the move. In the Game
business, we will further develop our PlayStation business and create a broadband computer
entertainment industry that transcends the existing game industry framework. In our Content
business, we will create high-quality entertainment content, not only in Hollywood, but also in
other regions and distribute them globally.
To Our Shareholders