Money is in content
Sony's new CEO says the outfit needs to get away from its hardware roots and get into the more lucrative content markets.
While the company, which bought the world the Walkman, Vaio, Cyber-shot, PlayStation, might have made its name building gadgets, CEO Kazuo Hirai said it must now focus more on the software and platforms they access. He said that Sony, which was traditionally was a purveyor of hardware could be made into something bigger than that.
Hirai said Sony will not abandon televisions, but has slashed sales targets and moved to outsource production of key components in an effort to turn the business around in the next two years. What he is more interested in is using Sony's large in-house video game, movie and music holdings through efforts like its Sony Entertainment Network and PlayStation Certified program.
He thinks that Sony's entertainment assets are the key to getting one up on other hardware makers. In this he is following Apple and Amazon.