Sony 2003 Annual Report Download - page 12

Sony Corporation Annual Report 200310
develop the market for it as w ell. Compatible with
MPEG-4 and other codec technology, the UM D can
hold about two hours of programming with DVD-Video
grade picture quality. Sophisticated copyright protection
technology is also incorporated. As a result, a variety of
content, not only game software, but also motion
picture and music content, can be used. PSP and UM D
have naturally sparked strong interest within the game
industry, but the same has also been the case in the
motion picture and music industries.
With PSX and PSP, we have the means to build an
immense, multidimensional platform supported by
advanced devices from Electronics and leading-edge
semiconductors developed for Game. We plan to create
a completely new market on this platform, one that
extends to the latest available content in the game,
video and music arenas.
Initiative 3: Heighten Sony’s stature in IT and
communications
The global IT and communications market is massive;
annual revenues for calendar 2002 reached approxi-
mately 90 trillion yen. We plan to achieve significant
growth through the strengthening of our VAIO PC
business and our mobile phone business, which is
conducted by Sony Ericsson M obile Communications
AB (SEM C).
Since its launch, the VAIO has capitalized on its
unique AV/IT applications and attractive styling to create
an entirely new concept in the home PC market. In the
fiscal year ended M arch 31, 2003, Sony’s VAIO business
endured extremely difficult conditions as the PC market
was battered by intense price-based competition. In the
fiscal year ending March 31, 2004, we will once again
stress the defining elements of the VAIO: its excellent
craftsmanship and unique applications. Netw orking
functions, such as home network and wireless LAN
technology, as w ell as recordable DVD drives and other
features will be installed in VAIOs in an effort to take
the convergence of AV and IT to an even higher plane.
New styles will continue to be introduced, too, as we
reignite the spirit of innovation that accompanied the
VAIO at its launch.
On the operations side, we w ill improve design,
manufacturing and sales efficiency while expanding the
Internet sales channel, all in an effort to improve profit-
ability. We foresee significant grow th in two regions.
One is Europe, where w e w ill begin promoting the VAIO
in earnest. The other is China, where we w ill, among
other things, increase local production.
Our plans include extending the VAIO brand to new
concept products that utilize PC technology and to
other PC related products. This will transform VAIO from
a brand representing a product to one that represents
an entire business, contributing to the grow th of all
VAIO-related activities.
In October 2001, Sony and Sw eden’s Ericsson jointly
established SEMC. Since its inception, this company has
worked to develop unique products that utilize the
inherent strengths of both parent companies – AV
technology and communications technology. From the
fiscal year ending March 31, 2004, SEM C will introduce,
in earnest, products that capitalize on these strengths.
In the GSM/UMTS market, which is a mobile phone
network standard dominant in Europe and Asia and
spreading around the world, SEMC has already gained
attention for its high value added products that feature
imaging, game, music distribution and other functions
and services. In the Japanese market, SEMC will intro-
duce products that can be differentiated from competi-
tors’ products based on design and ease of use. On the
operations side of the business, SEM C is more closely
linking design, manufacturing and sales functions on a
global basis so that new products can be launched
faster and the company as a whole can become more
cost competitive. At a time when mobile phone industry
players are working to add information and entertain-
ment service functionality to the telephony capability of