In a recent interview with Bloomberg, Sony CEO Hiroki Totoki shed light on the company’s profound transformation. The Japanese conglomerate has successfully transitioned from being primarily an electronics manufacturer to a leading global entertainment powerhouse.
This strategic shift was instigated by the challenging crisis of 2013, which compelled Sony to adapt in response to declining financial performance and a loss of skilled employees. Intense competition from rivals in Korea and China further exacerbated the pressure to evolve.
The competitive landscape at the time was dominated by mass production strategies focused on driving down prices—a race Sony found itself unable to sustain. Consequently, the company made the decision to divest from certain manufacturing segments, including its Bravia television division, choosing instead to form a partnership with TCL.
The strategic pivot towards entertainment has demonstrably paid off. A decade ago, the combined revenue from games, film, and music accounted for approximately 30% of Sony’s total income. Today, this figure has soared to over 60%, with PlayStation emerging as the single largest contributor to this success.
Sony’s current objectives are clear: to establish itself as “the best place to play” and “the best platform for publishing.” The company aims to achieve this by strengthening its relationships with external publishers and further developing its robust network of internal studios.
Totoki also highlighted the escalating global popularity of anime, recognizing Crunchyroll’s significant role in combating piracy within this burgeoning market. Furthermore, Sony’s extensive music catalogs continue to generate a stable and consistent revenue stream.
Interestingly, the CEO openly admitted to “not being a big fan of video games” himself. He expressed a personal preference for enjoying TV series and listening to music, specifically citing the British band Oasis as a favorite.