Sony to close 20 of 31 US stores and sell off PC & Vaio division

Sony Electronics has announced it will soon close two-thirds of its retail locations across the US.

The Japanese-based consumer electronics company has 31 stores in the US, but 20 of them are now shutting down to maintain "competitiveness in an evolving consumer electronics market". As listed on Sony's website, the 11 remaining US stores are mostly located in major metropolitan areas such as New York City, Los Angeles, Orlando, and Houston.

"While these moves were extremely tough, they were absolutely necessary to position us in the best possible place for future growth," said Mike Fasulo, President and COO of Sony Electronics. "I am entirely confident in our ability to turn the business around, in achieving our preferred future, and continue building on our flawless commitment to customer loyalty through the complete entertainment experience only Sony can offer."

This significant reduction further means Sony will cut roughly 1,000 jobs in the US, though those positions are part of a previously announced reduction of 5,000 jobs globally. Sony, which is known for its PlayStation console and Bravia TV, is striving to get ahead in the smartphone and computer markets, but it is fledging, especially with major companies like Apple and Samsung Electronics dominating the gadget space.

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As tablet and phone sales soar across the industry Sony has been failing to shift PCs under the Vaio brand. Now Sony has announced it's going to sell Vaio and its PC business as a whole to Japan Industrial Partners by the end of March.

Sony also says it will be reforming its TV department to make it a standalone entity by the end of June 2014.

During Q3 Sony saw sales increase from its mobile arm, with phones and tablets on the rise, but still forecasts a loss of around $1.1 billion for 2013. Hence the decision to focus on sales of phones and tablets. This drop comes in the year the PS4 sold 4.2 million units and 9.7 million games in its first six weeks as well as a huge increase in PlayStation Plus subscriptions.

All these changes mean Sony will have to cut 5000 jobs worldwide by March this year. For those who bought a Vaio product Sony promises it will fulfil its aftercare warranties.

The separation of the TV arm should leave it to focus on high-end sets and 4K screens (of which Sony claims to have 75 per cent market share) with the goal of returning to profit within the next financial year.

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