Sony CEO Kenichiro Yoshida outlined the company’s strategy, saying it is focused on helping creative professionals deliver what he calls “kandou,” or moving experiences.
Japanese electronics and entertainment giant Sony is shifting its focus away from traditional gadgets and towards creativity in movies, anime and video games.
Sony Chief Executive Officer Kenichiro Yoshida spoke Thursday about the company’s new direction, emphasizing the importance of delivering “kando,” or deep emotional experiences, through creative content. Yoshida declined to comment on rumors that Sony and Apollo Global Management are interested in acquiring Paramount Global, but said the company’s current strategy is to buy iconic products like the Walkman and Trinitron TVs. He emphasized that he is prioritizing the creative process.
He noted that “synergies” have been created across intellectual property in various areas, including anime, music, games and movies. “We will continue to support people’s creativity through technology,” Yoshida said in an online briefing. Sony has faced criticism for expanding into low-margin areas of movies, music and other entertainment as it navigates a competitive market with rivals offering affordable alternatives.
Nevertheless, since acquiring EMI Music Publishing in 2018, Sony has invested approximately 1.5 trillion yen ($10 billion) over six years to strengthen its content production capabilities. In 2021, Sony acquired Crunchyroll, a platform that boasts more than 13 million paid subscribers and distributes Japanese animation to a global audience.
Another acquisition is YOASOBI, a Japanese music duo that uses Vocaloid technology, or singing voice synthesis software, to win fans around the world. Sony’s real-time computing technology, which Mr. Yoshida described as capturing “this moment,” is used in cameras for sporting events because of its ability to capture fast-moving subjects without distortion.
Yoshida said the technology is also used in reporting, editing, 3D video, computer graphics including in blockbuster movies such as “Godzilla Minus One,” and games based on the movements of human athletes.Sony recently announced that its quarterly profit rose to 189 billion yen ($1.2 billion) from 141 billion yen a year earlier.
Game console maker PlayStation’s quarterly sales rose 14% to 3.48 trillion yen ($22 billion). However, Sony reported a 3% decline in profit for the fiscal year ending in March to 970 billion yen ($6.2 billion) due to poor performance in its financial services division, which is expected to be partially incorporated next March.