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Sony is closing down its PC division to focus on cameras and phones
The closure will see the loss of 5,000 jobs across the firm's global offices
It will also focus on its TV division, and the Playstation and Xperia brands
While the Vaio notebook brand is to be sold to Japan Industrial Partners
Japanese tech giant has been making personal computers since 1982
It is predicted to make a loss of 110 billion yen (£665m) this financial year
By VICTORIA WOOLLASTON
PUBLISHED: 15:31, 6 February 2014 | UPDATED: 15:36, 6 February 2014
Sony has delivered another nail in the PC coffin by announcing plans to stop making its personal computers to focus on cameras, smartphones and games consoles.
Amid what it described as ‘drastic’ changes in the industry, the Japanese firm has decided to ditch the loss-making side of the business, after more than 30 years, as part of a shake-up which will see 5,000 people lose their jobs.
Sony also said it will be putting extra focus into is TV section to bring back profit by concentrating on sales of high-end models.
Sony is to stop making PCs and laptops after more than 30 years to focus on cameras, smartphones and games consoles. The plans will see the loss of 5,000 jobs worldwide. The tech giant also announced it was selling its Vaio brand of notebooks, pictured, to to Japan Industrial Partners (JIP)
SONY'S FINANCIAL RISE AND FALL
The news about the closure of its PC division comes as Sony predicted it will make a loss of 110 billion yen (£665million) for the current financial year.
This follows a 43 billion yen (£260 million) profit in the year ending March 2013.
However there was a 27 billion yen (£163 million) profit for the third quarter, helped by improved sales of its smartphones and the launch of its Playstation 4 games console.
Sony said it would cut its global workforce by about 3 per cent by the end of March next year, with 1,500 job losses in Japan and 3,500 overseas.
Sony launched its first 8-bit personal computer, the SMC-70, featuring BASIC computer language and 3.5-inch floppy drive, in 1982.
More recently it has developed a range of slimline ‘notebook’ Vaio devices.
Sony said neither its TV nor PC businesses are expected to make a profit in the current financial year, and aims to sell Vaio to Japan Industrial Partners (JIP) by the end of next month.
Sony has been challenged by stiff competition from Samsung and Apple, and plans to use its now three core businesses to drive growth in electronics, which include cameras, the Playstation, and Xperia smartphones.
The company said: ‘Following a comprehensive analysis of factors, including the drastic changes in the global PC industry.
The news about the closure of its PC division comes as Sony predicted it will make a loss of 110 billion yen (£665million) for the current financial year. However there was a 27 billion yen (£163 million) profit for the third quarter, helped by sales of Playstation products, pictured on display in Tokyo
'The company has determined that concentrating its mobile product line-up on smartphones and tablets and transferring its PC business to a new company established by JIP is the optimal solution.
‘As part of the business transfer to JIP, Sony will cease planning, design and development of PC products. Manufacturing and sales will also be discontinued after the spring 2014 line-up to be launched globally.
‘Even after Sony withdraws from the PC market, Sony customers will continue to receive aftercare customer services.’
Sony launched its first 8-bit personal computer, the SMC-70, pictured, featuring BASIC computer language and 3.5-inch floppy drive, in 1982. Since then Sony has been challenged by stiff competition from Samsung and Apple
The news came as the company predicted it would make a loss of 110 billion yen (£665million) for the current financial year.
This follows a 43 billion yen (£260 million) profit in the year ending March 2013.
However there was a 27 billion yen (£163 million) profit for the third quarter, helped by improved sales of its smartphones and the launch of its Playstation 4 games console.
Sony said it would cut its global workforce by about 3 per cent by the end of March next year, with 1,500 job losses in Japan and 3,500 overseas.