TOKYO: Sony, the electronics manufacturer, is refocusing its corporate strategy around the "DNA" which previously saw it develop a string of successful products.

The firm has predicted overall losses will hit ¥520bn in the current fiscal year, prompting Kazuo Hirai, who took over as CEO in April, to establish the goal of restoring Sony to its "former glory".

"Now is the time for Sony to change," he said. "How we go about making this happen will determine if Sony will be back."

Hirai hopes to enhance managerial decision-making, pursue "selective" long term investments, introduce innovative products and reverse eight years of losses for its TV unit.

Within this, imaging, gaming and mobile will be the core areas of focus, taking 70% of its R&D spending going forward, with the aim of yielding 85% of operating profit from these sectors by 2014.

Hirai outlined several resources Sony can draw upon, including a global reach and brand recognition, technological know-how and strong entertainment and financial services businesses.

More broadly, he suggested "the Sony DNA" would play a central role, saying: "Sony has always been a company that used its entrepreneurial spirit to create never-before-seen products that stirred curiosity and ushered new eras of entertainment.

"It is my responsibility to create management foundations that allow each employee to make the most of this DNA within them to address each and every one of the issues that must be resolved ... This is key to the rebuilding of Sony."

Furthermore, the firm intends to expand into new or growing businesses, such as devices for the medical and life sciences industries, as well as advanced 4K imaging technology.

In the mobile arena, where target revenues have been set at ¥1.8tr by 2014, Sony will roll out offerings like tablets and PlayStation "certified" smartphones and other portable gadgets.

"We plan to reduce product development lead time for key models by more than half and as a result rapidly launch appealing and competitive products into the market," said Hirai.

Turning to television, Sony has found that volume demand is still dominated by LCD TVs at present, meaning this remains a vital market. However, it is also working on televisions that are integrated with mobile devices and networked communications.

Data sourced from SeekingAlpha; additional content by Warc staff