Japanese electronics and entertainment giant Sony is shifting its focus towards creativity in movies, animation, and video games under the leadership of CEO Kenichiro Yoshida. The company is prioritizing the delivery of moving experiences, or “kando,” over traditional gadgetry, moving away from past successes like the Walkman and Trinitron TVs. Yoshida emphasized the importance of supporting creativity through technology rather than relying on past products. Sony’s strategy now revolves around intellectual property spanning animation, music, games, and films, rather than the traditional synergies between entertainment and electronics.
As Sony faces increasing competition in the electronics industry, it has been investing heavily in content creation to stay competitive. Over the last six years, the company has poured approximately 1.5 trillion yen ($10 billion) into strengthening its content creation capabilities, starting with the acquisition of EMI Music Publishing in 2018. Sony’s recent acquisitions, such as Crunchyroll and Yoasobi, have helped expand its presence in the entertainment industry. Crunchyroll, with over 13 million paid subscribers globally, delivers Japanese animation to a global audience, while Yoasobi, a music duo utilizing Vocaloid technology, has garnered international fans.
Sony’s real-time computing technology, which captures moments without distortion, has found applications in various industries. Yoshida highlighted its use in cameras for sports events, news coverage, editing, 3D video, and computer graphics, including popular movies and games. The technology enables quick and accurate capture of moving subjects, making it valuable for various creative projects. The company’s recent quarterly financial report revealed a rise in profit to 189 billion yen ($1.2 billion) from the previous year, with sales for the PlayStation game machines also increasing by 14% to 3.48 trillion yen ($22 billion).
Despite its recent success, Sony faced a slight decline in annual profit for the fiscal year ending in March, primarily due to underperformance in its financial services segment. The company reported a 3% decline in profit, totaling 970 billion yen ($6.2 billion), prompting plans to partially spin off the struggling segment next year. Sony’s ongoing shift towards content creation and creativity in movies, music, and gaming signals its commitment to innovation and adaptation in the face of evolving market dynamics. By prioritizing technology that supports creativity and delivering immersive experiences, Sony aims to solidify its position in the competitive entertainment landscape while continuing to drive growth and innovation across its diverse portfolio.
