Sony 2003 Annual Report Download - page 5

Sony Corporation Annual Report 2003 3
In the Game segment, operating income increased due to higher softw are unit
sales and the benefit of continued reductions in hardware manufacturing costs.
The Pictures segment also reported higher operating income, due primarily to
the strength of releases such as Spider-Man, Men in Black II, xXx and Mr. Deeds.
The M usic segment, on the other hand, recorded an operating loss as
restructuring expenses increased and music product sales decreased.
As for restructuring, w hich we have been undertaking since the fiscal year
ended March 31, 2000, on a consolidated basis, Sony recorded approximately
100 billion yen in charges during the fiscal year ended March 31, 2003, the brunt
of which w ere incurred in the Electronics and M usic segments. As a part of this
restructuring in the Electronics segment, Aiwa Co., Ltd. was merged w ith Sony
in December 2002, headcount was reduced, and businesses, primarily in the
component category, w ere downsized or eliminated. In the Music segment, Sony
Music Entertainment Inc., which conducts business in every area of the globe
except Japan, reduced its headcount by more than 10% in order to cut costs and
improve operational efficiency.
Kunitake Ando
President and Group Chief Operating Officer