Sony to cut 10,000 jobs, will focus on games

Sony is one of the largest companies in the world, with its hand in a number of businesses, from movie production, music licensing, electronics manufacturing, and of course, game development. Hit hard by the economic downturn, a strengthening yen, and other factors, the company has announced that it will post its "worst loss ever," continuing four years of unprofitability.

To stem losses and turn the company around, newly appointed CEO Kaz Hirai announced a new plan that will realign Sony's focus. However, the new strategy can't be implemented without axing 10,000 jobs, about 6 percent of the company's global workforce.

"Sony will change. I've fully dedicated myself to changing Sony," Hirai said, according to The Wall Street Journal.

Part of Hirai's five-pronged strategy for turning the company around is "strengthening core businesses." The new Sony will have three core businesses, which will eventually represent "70% of total sales and 85% of operating income for the entire electronics business." The three pillars are: digital imaging, games, and mobile.

Downloadable games will be an increased focus for the company, as will the PlayStation Suite--a development platform that enables cross-platform games across PS Vita and Android devices. Sony will target game business sales of one trillion yen ($12.3 billion) and operating income margin of 8% by fiscal year 2014. The company's mobile division will also take further advantage of the Sony Entertainment Network--which powers the PlayStation Store and other PSN services.