Sony Plans to Close Optiarc Optical Drive Division in March 2013

Sony Corp. plans to shutdown its Optiarc optical drive division in March 2013, according to the Japanese newspaper, The Asahi Shimbun.

The company was established on April 3, 2006 as a joint venture between Sony and Nouman Corporation, each had share of 55% and 45% respectively. On September 11, 2008, it was announced that Sony would take over NEC’s 45% share, making Optiarc wholly owned subsidiary of Sony. This took effect on December 5, 2008. This subsidiary specializes in CD and DVD drives for desktop and PC markets.

Sony, which has posted severe losses in 2011 is in the process of eliminating loss making businesses and this move is one of them.  Sony Chief Executive Officer Kazuo Hirai had detailed his action plan  to get Sony on track  back in Feb 2012, and getting rid of Optiarc  is surely one way of  transforming Sony’s business portfolio.

Currently, Sony Optiarc has 10-15% share in the global market for optical disk drives, but it reported Operating losses.  It is quoted that, fierce price competition with rival companies also prompted Sony to take the tough move. An estimated 400 employees will be let go, through an early retirement program.

 

AddThis Website Tools
Saraswathi Pulluru

Telecom Consultant by Profession. Interested in Startups by Passion. Never tired to talk to and write about entrepreneurs, who are making the world a better place to live.

Recent Posts

Ness Digital Engineering launches ATONIS: An AI-powered engineering workbench to accelerate product innovation

Bridging intelligence and engineering maturity for a digital-first world Today’s engineering teams face mounting pressure…

2 days ago

War by algorithm: As AI & robotics enter our defense budgets what will our battlefields look like?

As Artificial Intelligence (AI) and robotics redefine the battlefield, how should we feel about it?…

3 days ago

Funding alert: Tech startups that raked in moolah this month

The Tech Panda takes a look at recent funding events in the tech ecosystem, seeking…

5 days ago

AI & technology trends in the glass & manufacturing industry

Walk near the glass facade of any modern building in India today, and it would…

5 days ago

AI literacy for non?tech teachers: A guide to ‘AI for everyone’

Artificial Intelligence (AI) is no longer the exclusive domain of tech experts or computer scientists.…

1 week ago

Is AI assisting students or creating a future of cheaters?

Artificial Intelligence (AI) has been making moves to get into the classrooms. Will it make…

1 week ago