Sony and TCL Electronics have inked a memorandum of intent to forge a joint venture that will assume control of Sony's Home Entertainment division. This division encompasses integrated operations for products like televisions and home audio systems. The anticipated launch date for the joint venture is April 2027, with TCL Electronics set to own a 51% stake and Sony a 49% stake. Notably, the products under this venture will retain the use of iconic brands such as SONY and BRAVIA.

Forecasts indicate that global TV brand shipments will surge to 220 million units by 2025. Among these, TCL is projected to ship 30.41 million units, securing the second spot, while Sony is expected to ship 4.1 million units, ranking tenth. In a striking contrast, back in 2015, Sony and TCL boasted comparable TV shipment volumes. However, over the past decade, Sony's TV shipments have plummeted by a staggering 68%, prompting the company to pivot its focus towards the high-end market.

This strategic business restructuring aligns with Sony's long-term vision to diminish the reliance on hardware businesses, such as televisions, for a significant portion of its sales revenue. Industry experts opine that Sony's TV business has been incurring losses, and the collaboration with TCL presents an opportunity to leverage complementary strengths. TCL brings to the table its prowess in manufacturing scale, resource integration, and operational efficiency. Moreover, its contract manufacturing platform, Moka Technology, boasts ample production capacity. In a related development, Hisense had previously acquired the core TV business of Toshiba.

Sony's diverse business portfolio spans five sectors, with the Game & Network Services sector emerging as the primary contributor to both revenue and profit.