Sony 2006 Annual Report Download - page 8

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We also committed to significantly increasing the transparency
around plan execution by giving quarterly updates to the financial
community.
Strengthening Sony’s Electronics Business
Strengthening Sony’s Electronics business is our top priority given
the significant impact a turnaround would have on our consolidated
performance. Our key focus will be working to establish market-leading
positions in such areas as televisions, digital imaging, video
recorders and portable audio. This will be executed in tandem with
efforts to strengthen Sony’s semiconductor and key component
businesses.
In particular, our efforts will concentrate on turning around Sony’s
television business by rationalizing manufacturing sites, increasing
the ratio of internally sourced components and centralizing
engineering functions. We target the television business to reach
profitability in the second half of the year ending March 31, 2007.
Growth Initiatives
In addition to organizational and restructuring initiatives, broad-based
growth initiatives are also an integral component of our plan.
Electronics
Our primary goal is to make the “HD World” a major integrated
profit pillar. Sony is uniquely positioned to benefit from the transi-
tion to HD and already has an established range of broadcast and
consumer hardware products, as well as content assets, that lead
the industry in HD digitization. Blu-ray Disc—the highest capacity,
next-generation optical disc format, supported by leading companies
in every key industry—will also be a driver of Sony’s HD business.
In the year ending March 31, 2007, Sony will launch a range of Blu-
Ray Disc-related products and HD content.
Other key Electronics growth focus areas include:
•Semiconductors for games and imaging, and key components
for developing innovative technologies for system LSIs—for
home and mobile products—and next-generation displays, as
well as Blu-ray Disc-related devices;
•Continued enhancement of CCD and CMOS image sensors;
•Further development and evolution of organic light-emitting
diode (OLED) displays through the establishment of the Display
Device Development Group; and
•Strengthening software development to assure interoperability
and superior user interfaces through the establishment of the
Technology Development Group.
Game
Our top priority in the Game business is the successful introduction
of PLAYSTATION®3, an event that will galvanize and strengthen all of
Sony and further grow the market for next-generation computer
entertainment, realized through the combination of Cell and RSX®
processors. PSP® (PlayStation®Portable), which has become the
fastest-selling platform in Sony Computer Entertainment’s history,
with 17.0 million units shipped as of March 31, 2006, will solidify its
market position by building upon many of its existing functions,
including WiFi LocationFree™ connectivity, and adding new features
such as a camera and GPS receiver. Although we will continue to
extensively rely on the broad-based ecosystem of content developers,
we will also work to reinforce our game development strength and
create new entertainment experiences under the initiative of SCE
Worldwide Studios.
Entertainment
The advent of new media, such as UMD® and Blu-ray Disc, will
provide enhanced platforms on which to leverage Sony Pictures
Entertainment digital content assets and strengthen ties to other
Sony business groups. At SONY BMG MUSIC ENTERTAINMENT,
the positive effects of the joint venture will continue to be harnessed
to strengthen the company’s position, and the company will
continue to pursue its successful digital distribution strategy.
Sony Music Entertainment (Japan) continues to be extremely well
positioned—especially with its market-leading digital music
business—for future growth.