Sony 2015 Annual Report Download - page 27

Sony invested approximately 253 billion yen in the semiconductor business, including the acquisition of
semiconductor fabrication facilities, equipment and related assets owned by Toshiba Corporation (“Toshiba”),
during the fiscal year ended March 31, 2016. This 253 billion yen investment included approximately 205 billion
yen for image sensor fabrication capacity. In the fiscal year ending March 2017, Sony expects to invest
approximately 120 billion yen in Semiconductors. This investment includes approximately 70 billion yen for
image sensor fabrication capacity.
B. Business Overview
Sony Corporation and its consolidated subsidiaries (“Sony”) realigned its business segments from the first
quarter of the fiscal year ended March 31, 2016 to reflect modifications to its organizational structure as of
April 1, 2015, primarily repositioning certain operations in All Other and the Devices segment. In connection
with this realignment, the operations of Sony’s disc manufacturing business in Japan, which were included in All
Other, are now included in the Music segment and the operations of So-net Corporation and its subsidiaries,
which were included in All Other, are now included in the Mobile Communications (“MC”) segment. Certain
operations regarding pre-installed automotive audio products which were included in the Devices segment are
now included in the Home Entertainment & Sound (“HE&S”) segment. In addition, the medical business,
previously included in All Other, is now included in the Imaging Products & Solutions (“IP&S”) segment as a
result of a change in the Corporate Executive Officer in charge of the medical business.
For details on the nature of Sony’s operations, please refer to Nature of Operations under “Consolidated
Financial Statements”.
Products and Services
Mobile Communications (“MC”)
Sony Mobile undertakes product research, development, design, marketing, sales, production, distribution
and customer services for mobile phones, tablets, accessories and applications. So-net provides Internet
broadband network services to subscribers as well as creates and distributes content through its portal services to
various electronics product platforms such as PCs and mobile phones.
Game & Network Services (“G&NS”)
The following table sets forth Sony’s G&NS segment sales to external customers by product categories.
Figures in parentheses indicate the percentage contribution of each product category to the segment total.
Fiscal year ended March 31
2014 2015 2016
(Yen in millions)
Hardware 513,425 (54.2) 733,757 (56.8) 721,829 (48.8)
Network 200,229 (21.2) 351,467 (27.2) 529,318 (35.8)
Other 232,825 (24.6) 206,922 (16.0) 228,628 (15.4)
G&NS Total 946,479 (100.0) 1,292,146 (100.0) 1,479,775 (100.0)
Hardware:
“Hardware” includes home and portable game consoles.
Network:
“Network” includes network services relating to game, video, and music content provided by Sony Network
Entertainment International LLC (consolidated into Sony Interactive Entertainment LLC on April 1, 2016).
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