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

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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.

  • J.j. Barrington

    How about some context?

    • ShowanW

      I guess they will be goin the Microsoft route and become a platform and PlayStation will just be one of the many vehicles to push gaming services..

      Like EA Origin/EA Access …

      Hardware alone is only gonna generate so much revenue. Getting people attached to the ecosystem and hooked on some type of platform is where u generate re-curring revenue.

      People knock EA, but Access is/was a smart move. It keeps generating income

      • J.j. Barrington

        lol, stop it.

        I ask for context, and you take the money and run, as the saying goes.

        Please don’t. You’re embarrassing yourself.

        • ShowanW

          you want context … here’s context.

          sony as a whole (not just playstation) needs a renewable revenue streams… Sony has managed to stop the hemorrhaging but needs something other than Playstation to generate re-occurring revenue streams…

          • J.j. Barrington

            That doesn’t bring ANY context, you moron.

            Context would be when this analyst said this, and to what he was referring, exactly.

            Context would be evidence that Sony was, indeed, ramping down on its development and production of hardware.

            Context is not your horribly generalized comments with no examples, that ignores that PlayStation is NOT their only revenue source.

            Bet you have a lot of fun with that ignorance at parties, huh? Well… assuming you get invited.

          • ShowanW

            while u hurl out insults… (enjoy that by the way…)

            name another department at Sony HQ that makes generating a dependable income stream…

          • J.j. Barrington

            Finance. Sony Music.

            There are two.

            Sorry for the insult(not really), but when you continually say stupid things and believe yourself to be right so vehemently, it makes people insult you.

          • Ryuken13

            http://www.sony.com/en_us/SCA/careers/overview.html

            Since you know so much go work for Sony. That company needs saving and you have all the answers.

          • ShowanW

            they are a publicly traded company… not that hard to find things out.

          • Ryuken13

            Agreed. They do have minutes for shareholder meetings and such..

            What happens is gamers armchair quarterback a global corporation like they know WTF they are talking about. They don’t.. Neither do I but at least I admit it lol.

            No need to delve into Sony’s financials unless I am buying stock or planning to try and get a job there lol.

  • Revolver Ocelot

    More desperation from Demetre and the other Xbox morons as their dead brand transitions into a PC-only digital distribution service.

  • Ryuken13

    Best selling hardware console of this generation, tons of exclusives, and they are “Going the path of Sega”???

    Utter Bull $h it.

    GTF out of here lol.

  • Hvd

    lol who would have thought this???.since they said ther is no more hardware this gen after the pro who would have thought they would say this????..

    …lmao