In the past year, Sony has been able to achieve progress in its recovery plan for key electronics business categories.
In order to continue this positive trend, Sony announced on Oct. 1, 2006, that it would streamline its core audio-video and IT businesses, as well as focus on critical semiconductor manufacturing and component device efforts.
This progress, however, was dented on Oct. 19 when the consumer electronics giant made a huge revision to its operating profits forecast for fiscal 2006. This was unfortunately due to the cost of replacing faulty notebook batteries and unexpected setbacks in its games business.
As a result of manufacturing difficulties faced with the Blue-ray laser diodes used in the PlayStation 3, Sony was forced to delay the launch of its latest video games console in Europe and elsewhere, and slash shipment numbers when the product unveils in the U.S. and Japan on Nov. 11.
In other market segments, however, Sony has performed better, particularly in flat panel TVs and digital cameras. For example, demand for Sony's Bravia flat-panel TVs have allowed the company to outsell competitors in the US$25 billion industry--a market which it had previously fallen behind.