Sony Is Shifting Its Focus From Hardware To Software And Services, According To Masako Kuwahara

Sony Ps4

Recently Sony Corp’s credit ratings have been upgraded, and most analysts believe that this is due to the fact that Sony is slowly shifting from the hardware business towards software and sales one. The move might also make sense as Sony has managed to repair its financial profile to a considerable extent after being in decline for the past several years.

According To Masako Kuwuhara who is the senior analyst for Moody’s here is where Sony’s future lies.

“The company’s strategy of focusing on strengthening its recurring revenue, such as network and subscription revenue supports the more cyclical aspects of the Game & Network Services segment and will contribute towards stabilizing earnings and cash flows over the medium and longer term.”

This statement could mean that Sony will look to push further into the digital games market, and providing subscription services such as the PS Now , and Sony will also continue its efforts into improving the PlayStation Network .

The resurgence can largely be credited to Kaz Hirai as well, who boasts a significant number of years of experience when it comes to the entertainment sector, and however one must question what does a move away from hardware entail? Although for the time being the statement refers to hardware such as TV’s and phones amongst other things, Is it possible that the PS4 and its latest incarnation the Pro will be the last consoles that Sony produces, or does it mean that Sony is actively pursuing the services segment, while keeping all of its cards close to its chest? In reality though that would be a really bizarre move considering the fact that the PS4 has sold more than 50 million units worldwide.

Let us know what you think about Sony’s switch in focus and whether you think there will be a PS5 in the next couple of years by commenting in the comments section below.