Sony is losing more money with Xperia smartphones than it earns with the PlayStation

With a surprise announcement yesterday, Sony announced that it will incorporate the Xperia Mobile division in the section of the group that manages TV, audio and cameras. The poor performance of phone sales had prompted several investors to even call for the closure if not the sale of the brand, but with today's move the Japanese company will be able to hide the performance of the Xperia line.

The new organization therefore envisages the creation of a new department called "Electronics Products and Solutions" starting from next April 1st. The decision can be considered as an almost obligatory move given the huge losses registered in recent times.

In detail, smartphones have caused Sony to lose about 940 million dollars during 2018. To better understand the crisis in the sector, it must be remembered that only in the second quarter of last year did the Xperia make losses of 480 million against a gain of only 317 million from its most successful division, the one dedicated to gaming with the PlayStation system.

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The causes of such a situation come from far away. To list some of the more obvious ones: a design that has not been renewed for too long and is now not so in line with the latest trends, lack of attractive features for the public, not to mention marketing strategies that are not happy and unable to generate that enthusiasm instead is exploited by the competition. The numbers leave room for few interpretations: globally in the second quarter of 2017 Sony sold 3.4 million smartphones, in the same period of 2018 only 2 million.

However, part of the losses are attributable to investments on 5G. However, given the situation, Sony, which initially declared that the telephony sector would go into profit in 2021, decided to halve its expenses. A choice that could have a decisive influence on the future hopes of the business.

However, the company has declared that it does not want to hide anything and that the Xperia department's figures will be communicated separately in the future.