Sony Corporation Financial review for the Year 2004-2005(As until Essay

Sony Corporation Financial review for the Year 2004-2005(As until Nov05) - Essay Example In the Electronics segment, Sony develops, designs, manufactures electronic equipment. Its subsidiary, Sony Computer Entertainment Inc., the Company develops, produces, manufactures and markets games like PlayStation, PS one, PlayStation 2, among others. In the Music segment, Sony produces recorded music and music videos, and also distributes compact discs (CDs), digital versatile discs (DVDs) and universal media discs (UMDs). Sony's Pictures segment includes production, acquisition and distribution of motion pictures, television broadcasting and online distribution. Sony's financial services include savings and loans. The Other segment consists of an advertising agency business and an Internet-related service business. Focusing on the recent financial year, Sony entered a new stage of development, one that seeks to target opportunities in the upcoming era of broadband networks. A new top-management team made up of CEO Sir Howard Stringer, Director Dr. Ryoji Chubachi, and CFO Mr. Katsumi Ihara was formed to take the lead in this important effort. This is a pivotal year for Sony Corporation, and this new structure will enable the company to streamline its operation, and provide a more cohesive focus for operating its businesses around the world in a proactive and strategic manner. This Report is an attempt to analyze and review, in depth the financial status, position and a comprehensive reporting of the same to the Investors of Sony Corporation. Financial & Market Standpoint(As of Nov'2005): The global economy was generally strong during the first half of the fiscal year. However, the U.S. economy began to slow in the second half of the year due to a rapid slowdown in growth of consumer spending and other economic factors. As the fiscal year drew to a close, economies in Japan, Asia, Europe, and elsewhere showed increasing signs of weakness. Even amid these worsening market conditions, Sony was able to achieve a 9% increase in consolidated net sales for the year (Hem Scott, Inc. ). On a local currency basis, sales rose 12%(Hem Scott, Inc. ). A large increase in sales of electronics products was the primary reason. Regarding earnings, the Electronics business performed very well, primarily due to the performance of digital products and semiconductors. The Game business posted a loss, which was chiefly a reflection of start-up expenses for the PlayStation 2 format. As a result, consolidated operating income increased only 1% compared with the previous year. However, exclud ing the impact of the stronger yen, on a local currency basis consolidated operating income increased 47%. Share of sales and operating revenue by business segment * Year ended March 31, 2005 All eyes are on Sony or, more likely, on its high profit PlayStation home video game systems. PlayStation 2 dominates the "game console market" with about 70% of global sales (Nintendo's GameCube and Microsoft's Xbox control about 15% each). Sony, one of the world's top consumer electronics firms, also makes a host of other products, including PCs, digital cameras, Walkman stereos, and semiconductors; these products account for more than 60% of the company's sales. Sony's entertainment assets include recorded music and