Back to the drawing board for Sony's TV business

Sony looks set to give the go ahead to a major restructuring of its TV business.

A senior exec at the Japanese firm has let slip that there will be big changes to the way it operates its TV business, says Reuters, not long after Sony slashed profit forecasts for the year.

Sony is currently on a rather appalling turn with its TV business, having notched up losses for eight years on the trot.

Now it’s thought that it will look to some drastic changes to avoid falling even further behind Samsung and others in the market.

Chief Financial Officer Masaru Kato is quoted in Nikkei saying that a new review will look through the business arm comprehensively, from development and production to sales of its Bravia tellies.

Sony will not be twiddling its thumbs. We can expect an announcement as soon as it’s ready. Rumours are for something big this month.

Sony has already been ditching its TV factories as fast as it can, as it loses ground to low cost foreign rivals, and has been outsourcing production to Foxconn.

Business is not exactly booming in many parts of the world, with slowing demand in Europe and the US.

In fact global shipment forecasts have dropped three percent, with many having already upgraded to LCD sets. Sony has dropped its sales expectations for its Bravia sets by 19 percent to 22 million units this year.

The announcement that Sony execs will be going back to the drawing board over its TV business also dovetails nicely with some merger rumours that have been floating around.

It’s thought that a merger with some other Japanese firms could be on the cards. Toshiba also sold one of its factories over in Mexico on the cheap, and could be looking to team up with Sony.  Hitachi is the third company potentially holding deal discussions.