Sony Group`s Long-Term Strategies and Direction focused on Realizing the "Creative Entertainment Vision"
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Totoki highlighted Sony's years-long directional shift to entertainment, content and creation as transformational for the company and leading to strong results, and stressed that Sony's priorities and commitment to growth in these sectors would continue.
"Building on our momentum and results to date and working with a laser-like focus to realize our long-term Creative Entertainment Vision will be at the core of our corporate strategies moving forward," commented Totoki.
Totoki provided updates on Sony's core business segments, their achievements and current priorities, and discussed the role they play in realizing Sony's "Creative Entertainment Vision." Introduced at last year's Corporate Strategy Meeting, Sony's "Creative Entertainment Vision" seeks to deliver Kando through creativity and technology, to maximize IP value and to "Create Infinite Realities," together with creators, partners, and employees, and through synergies between Sony's various businesses. Totoki emphasized that building on Sony's cross-company collaborations, leveraging the company's engagement platform initiative to connect diverse fan communities across various entertainment sectors, and leaning into Sony's strengths in growth areas such as anime, will be key to realizing this vision.
Highlights from the presentation are below. For further details, please refer to the presentation materials and recorded webcast from the event, which will be available on Sony's Investor Relations website.
1. Entertainment Businesses Integral to Realizing the Creative Entertainment Vision
Sony seeks to realize its long-term "Creative Entertainment Vision" that illustrates how it wants to deliver Kando through creativity and technology, together with creators, partners, and employees, and through synergies among Sony's various businesses.
- Game & Network Services
* PlayStation 5 (PS5) drives steady profit and invest thoughtfully to create the FUTURE OF PLAY.
* Expect stable growth in revenue and profit from network businesses due to the increase of monthly active users corresponding to the expansion of installed base, such as higher revenue and profits from PlayStation Plus.
* Anticipate further growth in Studio business through expanding user base driven by new titles like" Ghost of Yotei" and the live service game "Marathon", and ongoing titles such as "HELLDIVERS 2" and "Destiny 2".
* Focus on strong and profitable peripherals, such as PlayStation Portal with beta cloud streaming capacity.
- Music
* Focus on strengthening position in the global market, while continuing to improve profitability, and enhancing its core value proposition which includes repertoire centers in major markets, robust label and artist services, tailored service to independent artists, DIY Distribution, and music publishing.
* In the Japanese music business, continue to build on its success bringing Japanese artists such as YOASOBI to the global market.
* Focus on: Growing both organically and via deliberate acquisitions and in high growth markets, exploring further strategic investments in key areas and music catalog, increasing its presence, servicing fans, and expanding IP.
* Continue exploring the use of cutting-edge technologies such as AI to create value, while protecting the rights of artists.
- Pictures
* SPE is well positioned with strong pipeline including titles such as "Spider-Man: Brand New Day", Jumanji, "Spider-Man: Beyond the Spider-Verse" and four theatre-exclusive biopics about The Beatles.
* Anime is also expected to be a significant growth driver for the Pictures segment as seen with the success of anime-focused streaming service Crunchyroll.
* SPE will continue to be a hub for synergistic, cross-company collaborations.
2. Cross Business Collaborations and Synergy
Central to the "Creative Entertainment Vision", the value and potential of cross business collaborations have become evident in recent years with successful examples.
- Anime
1) Anime is a key driver of growth for
* Anime series adaptation of Game IP "Ghost of Tsushima: Legends"
* Establishment of anime production company
* Strategic capital and business alliance with
2) Amid the anticipated continued growth of the anime market, Sony plans to accelerate Crunchyroll's growth.
* Broadening service offerings such as e-commerce for anime merchandise, mobile game library services, and manga.
* Further expanding Crunchyroll's paid member base of over 17 million (as of
- Engagement Platform
Sony is building a new engagement platform to connect users and creators by leveraging PSN's core backend functions such as payment, data infrastructure, and security across various network services within
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Positioning LBE as an area to maximize the value of IP across various entertainment sectors, Sony is in the early stages of exploring the potential of LBE.
3. Future Growth in Technology-Related Areas as Enablers of Entertainment Businesses
- ET&S: Shifting focus of products and services towards content creation.
* Build on the success of Alpha(TM) and expand the imaging ecosystem as a growth driver.
* Strengthen sports data-related capabilities as exemplified by the acquisition of KinaTrax last year. Leverage real-time content creation technology, support alternative broadcasts to enhance fan engagement.
* Pursue innovation in content creation technology such as "XYN," real-time VFX, and 360 Virtual Mixing Environment.
- I&SS:
In the mobile image sensor business, Sony aims to achieve further growth by capitalizing on the trend toward larger sensor sizes and offering high value-added, differentiated sensors that meet customer expectations by combining a new generation process with sensors such as the two-layer transistor pixel "TRISTA". At the same time, Sony will explore options to enhance investment efficiency and control the necessary investments at an appropriate level. Sony also intends to generate mid- to long-term business growth in businesses with future growth potential, such as automotive sensors.
4. Achieving Growth Through Diverse Businesses and Talent
Sony`s diversity of businesses and people is paramount in realizing its Creative Entertainment Vision. Its approximately 110,000 employees creating an environment that generates diverse viewpoints and ideas, and the synergies generated is the source of its unique competitive advantages. Sony expects to continue to evolve, unleash the creativity of creators, and strives for a world of infinite realities, entertainment, and excitement.
Cautionary Statement
Statements made in this press release with respect to Sony's current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements about the future performance of Sony. Forward-looking statements include, but are not limited to, those statements using words such as "believe," "expect," "plans," "strategy," "prospects," "forecast," "estimate," "project," "anticipate," "aim," "intend," "seek," "may," "might," "could" or "should," and words of similar meaning in connection with a discussion of future operations, financial performance, events or conditions. From time to time, oral or written forward-looking statements may also be included in other materials released to the public. These statements are based on management's assumptions, judgments and beliefs in light of the information currently available to it. Sony cautions investors that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the forward-looking statements, and therefore investors should not place undue reliance on them. Investors also should not rely on any obligation of Sony to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Sony disclaims any such obligation. Risks and uncertainties that might affect Sony include, but are not limited to:
(i) Sony's ability to maintain product quality and customer satisfaction with its products and services;
(ii) Sony's ability to continue to design and develop and win acceptance of, as well as achieve sufficient cost reductions for, its products and services, including image sensors, game and network platforms, smartphones and televisions, which are offered in highly competitive markets characterized by severe price competition and continual new product and service introductions, rapid development in technology and subjective and changing customer preferences;
(iii) Sony's ability to implement successful hardware, software, and content integration strategies, and to develop and implement successful sales and distribution strategies in light of new technologies and distribution platforms;
(iv) the effectiveness of Sony's strategies and their execution, including but not limited to the success of Sony's acquisitions, joint ventures, investments, capital expenditures, restructurings and other strategic initiatives;
(v) changes in laws, regulations and government policies in the markets in which Sony and its third-party suppliers, service providers and business partners operate, including those related to taxation, as well as growing consumer focus on corporate social responsibility;
(vi) Sony's continued ability to identify the products, services and market trends with significant growth potential, to devote sufficient resources to research and development, to prioritize investments and capital expenditures correctly and to recoup its investments and capital expenditures, including those required for technology development and product capacity;
(vii) Sony's reliance on external business partners, including for the procurement of parts, components, software and network services for its products or services, the manufacturing, marketing and distribution of its products, and its other business operations;
(viii) the global economic and political environment in which Sony operates and the economic and political conditions in Sony's markets, particularly levels of consumer spending;
(ix) Sony's ability to meet operational and liquidity needs as a result of significant volatility and disruption in the global financial markets or a ratings downgrade;
(x) Sony's ability to forecast demands, manage timely procurement and control inventories;
(xi) foreign exchange rates, particularly between the yen and the
(xii) Sony's ability to recruit, retain and maintain productive relations with highly skilled personnel;
(xiii) Sony's ability to prevent unauthorized use or theft of intellectual property rights, to obtain or renew licenses relating to intellectual property rights and to defend itself against claims that its products or services infringe the intellectual property rights owned by others;
(xiv) the impact of changes in interest rates and unfavorable conditions or developments (including market fluctuations or volatility) in equity and bond markets on the revenue and operating income of the Financial Services segment;
(xv) shifts in customer demand for financial services such as life insurance and Sony's ability to conduct successful asset liability management in the Financial Services segment;
(xvi) risks related to catastrophic disasters, geopolitical conflicts, pandemic disease or similar events;
(xvii) the ability of Sony, its third-party service providers or business partners to anticipate and manage cybersecurity risk, including the risk of unauthorized access to Sony's business information and the personally identifiable information of its employees and customers, potential business disruptions or financial losses; and
(xviii) the outcome of pending and/or future legal and/or regulatory proceedings.
Risks and uncertainties also include the impact of any future events with material adverse impact. The continued impact of developments relating to the situations in
.
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