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10
While we certainly improved our profitability dramatically
in fiscal year 2009, we need to continue to transform
the company to achieve our targets of a 5% operating
profit margin and a 10% return on equity (ROE) in the
mid-term (by the year ending March 31, 2013). To be
successful, we must generate growth with consistent
profitability in all of our core businesses—particularly
our television and game businesses—and aggressively
develop new business including network services.
Televisions
Bringing our TV business to profitability is a key short-
term objective, while growing our business to a leading
market position is the key mid-term objective. Although
it recorded an operating loss, profitability in the TV busi-
ness improved dramatically in fiscal year 2009, due to a
complete overhaul of the business’ cost structure and
supply chain.
We have an innovative new product lineup and an
aggressive sales plan with a continuously revitalized cost
structure. As a result, we are targeting profitability in
LCD TVs in fiscal year 2010. In addition, this autumn we
will launch the Sony Internet TV. Developed in collabora-
tion with Google, Sony Internet TV is an exciting new
generation of television that not only offers new forms of
enjoyment through unprecedented Internet integration,
but is also able to “evolve” through the download of
applications. We are also developing the next generation
of TV display, and over the medium term are targeting a
20% market share.
Game
As mentioned earlier, the PlayStation®3 platform has
been gaining momentum since the launch of the slim-
mer, lighter and attractively priced PS3™ last year.
Through continued manufacturing cost reductions on
PS3™ hardware as well as an expected increase in
PS3™ software sales—both disc-based and online—we
are targeting profitability in the game business in fiscal
year 2010.
Going forward, we will strive to make the best use
of PS3™’s unique strengths to create new user ex-
periences and generate sales. PlayStation®Move
features a new motion controller that, when com-
bined with the PlayStation®Eye camera, can very
precisely track users’ movements to add a new
dimension to PS3™ games. Additionally, as a core
aspect of Sony’s Groupwide launch of 3D prod-
ucts, we have commenced the era of 3D gaming
by enabling all existing PS3™s to be upgraded to
Mid-Term Strategy
At a Media & Investor Conference (Nov. 19, 2009). From left: Hiroshi Yoshioka,
Corporate Executive Officer, Executive Deputy President and Officer in charge
of CPDG; Howard Stringer, Chairman, CEO and President; and Kazuo Hirai,
Corporate Executive Officer, Executive Vice President and Officer in charge of
NPSG.