Sony Reorganization Focuses on Devices

Sony Corp. announced a sweeping reorganization
Wednesday that it said will turn the company’s focus toward
delivering content over the Internet to devices such as
handhelds, set-top boxes, wireless phones and its PlayStation
game console.

Specifically, the company said it would pursue development of
“a ubiquitous value network” that provides always-on wired
and wireless broadband access to its content on a variety of
devices. The company said it would continually increase the
connectivity of its devices to be consistent with that vision.

For instance, it will intensify efforts to encourage online
gaming using PlayStation. An agreement is already in place to
link owners of the game console to others in Japan using
i-mode access, but the company will also will release a
broadband-compatible unit with a hard drive later this year.

The company also said it would focus on network distribution
of its content, including films and music. It said it is testing a system for distribution
of digital film content in the U.S. and will launch that business later in the year.

In addition, the company said it would continue to work with Universal Music, a
division of Vivendi, to develop a system to distribute music digitally. Sony also said it
would expand its services to enable personal content such as images and videos to
be distributed over the Internet.

Sony chairman Nobuyuki Idei said the company would pursue “soft alliances” with
other companies to accelerate the change.

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