Sony has recently announced the sale of its battery business to Murata Manufacturing Co, a Japan based Component Company in a deal worth around $166 million. The sale has been made in order to let Sony refocus its business and concentrate on video games, entertainment and camera sensors.
According to the sources, Sony has agreed to sell its battery business for about JPY 17.5 billion and expects to book an impairment charge of JPY 33 billion related to the sale.
Since the sale of the business was flagged in July, its impact on earnings for this quarter has appeared to be greater than expected.
With the selling of its battery business, Sony expects a profit of only $2.6 billion by the end of the financial year in the month of March. Which should equate up to around an 8 percent decline from the previous year!
According to analysts, sales of PlayStaion 4 and associated software are expected to boost profits for the company. This profit will further increase with the coming of upgraded versions of the Play Station during the year-end holiday shopping season.
Meanwhile, Sony also Unveiled its PlayStation VR headset and claimed that production of image sensors would return to full swing in the second half due to an increase in the demand of its smart phones.
Sony will announce its first-half results on Tuesday and we will probably get a better look at how well the company has been doing of late.
Though on paper the company does not appear to be doing very well, it is still hoping to make profits once it starts focusing on its conventional business model. Keeping in mind the highly competitive nature of the market Sony operates in, it must continue to do a commendable job with its video games, entertainment and camera sensors in order to live up to expectations and come back to bigger profits now that its battery business is gone.
Coming up with new technologies and upgraded products could really be the need of the hour for Sony.