Sony 2008 Annual Report Download - page 13

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11
categories to shrink substantially. Second, we expect sales of our
LCD TVs to grow dramatically, which will allow us to better cover
our fi xed costs.
Next, we will further differentiate our products from our
competitors’ through the use of internally produced key components
such as advanced films, LED backlights and specialized
semiconductors. We will also offer models with ultrathin designs,
lower power consumption and high frame rates. Also very important
are cost minimization initiatives such as efficient LCD panel
procurement through our two joint ventures (with Samsung
Electronics Co., Ltd. and with Sharp Corporation) and outside
sources, further reductions in design lead times and the number of
chassis, and the acceleration of local production. These initiatives
are expected to result in increased fl exibility in the market and
profi tability.
Sony also expects to achieve improved profi tability in our Game
segment in fi scal year 2008, which recorded a loss in fi scal year
2007. The most important initiative is reducing the cost of PS3™
hardware through such measures as continual reductions in the
number of components and decreasing the size of key
semiconductors, such as RSX™ graphics processor, by switching
from a 90-nanometer to a 65-nanometer manufacturing process.
Increasing sales of PS3™ software titles is the other key to
improving profi tability. We are off to a strong start for software in
fi scal year 2008, and we also have an exciting lineup of game
software and non-game services ready to be launched.
As a result of these initiatives, in fi scal year 2008 we expect to
achieve improved profi tability in both our TV category and Game
segment.
Sony Group Corporate Strategy Fiscal Year 2008 to Fiscal Year 20101
“To be the leading global provider of networked consumer electronics and entertainment”
• Expand our PC, Blu-ray Disc-related products and component/semiconductor businesses
into “trillion yen businesses,2” joining LCD TVs, digital imaging, game and mobile phones
and raising the total number of “trillion yen businesses” to seven
• Ensure that 90% of our electronics product categories are network-enabled and wireless-
capable by the fi scal year ending March 31, 2011 (fi scal year 2010)
• Roll out video services across key Sony products by fi scal year 2010, starting with service
launch on the PLAYSTATION®Network in summer 2008
• Double the annual revenue from BRIC countries to ¥2 trillion3 by fi scal year 2010
1 Three-year period ending March 31, 2011
2 Businesses each generating ¥1 trillion or more of annual sales to outside customers, except for Blu-ray Disc-
related business which includes intersegment sales
3 Includes Sony Ericsson Mobile Communications AB and SONY BMG MUSIC ENTERTAINMENT
as allocated
08SonyE_P1_P13_0804.indd 1108SonyE_P1_P13_0804.indd 11 08.8.7 2:17:49 PM08.8.7 2:17:49 PM