Sony Sells Sharp Shares, Recoups $125 Million

Sony has managed to get back most of its original $125 million (£79.9 million) investment in Sharp's LCD panels, by selling off its shares in the company - back to Sharp.

The termination of the agreement between the two firms was said to be due to the "rapidly changing market," which is somewhat true, but the change has been happening over the past year, so it's hardly been instantaneous.

Japanese firms in general have been facing increased competition from electronics companies elsewhere in the world. South Korea has been dominating, with corporations like Samsung really threatening the high-end companies such as Sony and Toshiba, while China has the other end of the spectrum covered.

On top of that, Apple has become a worldwide force to be reckoned with, becoming the top dog in many small form factor electronics, as well as potentially threatening the TV sector with its Apple TV development.

Sony itself posted a huge loss in the past fiscal year, its TV branch alone losing just under 230 billion yen (around £1.8 billion). In total, Sony posted an operating loss of over £3.5 billion.

However, with the new head of the firm, Kazuo Hirai, promising to take the failing electronics arm of the business under his wing and return it to profitability, the next 12 months should be very interesting for Sony.

Source: Games Industry