Sony sells its VAIO PC business, is splitting TV arm into a separate company

Sony said it was "addressing various options" as
recently as yesterday when it came to its VAIO PC and
laptop arm, and while announcing its financial results
for Q3 2013, it's apparently come to a decision. Amid
reforming its TV arm (and splitting it into a standalone
entity by June 2014), it's going to sell its PC business
and VAIO brand to Japan Industrial Partners (JIP), with
the final deal set to be done by the end of March 2014.
The company has reported a drop in demand for its PCs
in prior financial statements, and (barring the VAIO
Flip 11A), Sony didn't really have much to show from
its VAIO range at this year's CES. During the earnings
call today, CEO Kaz Hirai said that it was an
"agonizing decision", and that it was "a very Sony
brand... It stirred up the PC market."

The company says it's no longer designing and
developing PC products, while manufacturing and sales
will wrap up after the company's final VAIO range goes
on sale globally. It has decided to focus on those post-
PC products (yep, smartphones and tablets), meaning
that it had to make some big decisions with less
successful parts of the business. During Q3 2013, it saw
"significant profit improvements" compared to the same
period last year. Sony saw year-on-year sales increases
from its mobile arm, but still forecasts an annual loss of
around $1.1 billion (110 billion yen) for the full year: it
had previously projected a 30 billion yen profit. The
blame is leveled at the businesses its now looking to
change. Other highlights include the PS4, which sold
4.2 million units and 9.7 million games in its first six
weeks. The games arm also saw a "dramatic increase"
in PlayStation Plus subscriptions -- something that's
mandatory for multiplayer on the company's new
console.

Sony will cut a total of 5,000 jobs worldwide (1,500 in
Japan) by the end of the 2014 fiscal year, while the new
PC company has stated that it will hire around 250 to
300 Sony employees, encompassing design,
development manufacturing and sales, and will be
based in Nagano -- where Sony's current VAIO HQ
resides. The company is promising to fulfill all its
aftercare warranties. Sony is signed up to invest 5
percent of the new company's capital to support its
launch and smooth over the transition. Restructuring
costs across both the TV and PC segments are now set
to cost an extra 20 billion yen. Sony is now set to focus
on its high-end sets and 4K screens, and hopes that
changes will ensure the TV business returns to
profitability within the next financial year.

Via: Engadget