Sony is moving into Web3 to pursue a new phase of growth. Major initiatives include the acquisition of a centralized exchange (CEX), the launch of the Soneium blockchain mainnet, and the development of a stablecoin. Sony's Web3 strategy focuses on three pillars: non-financial (entertainment and games), financial (stablecoins, security tokens), and infrastructure. By connecting these areas, Sony aims to build a comprehensive Web3 ecosystem.
Once a symbol of Japan’s economic growth and a leader in electronics, gaming, and entertainment, Sony’s ascendancy began to wane in the 2000s. The company struggled to adapt during the rapid transition from analog to digital, exposing itself to competitive pressure from companies like Samsung. This difficulty in responding to market changes plunged Sony into crisis. In response, Sony took decisive steps to overcome the challenges and embark on a new phase of growth. The company drastically reduced its reliance on the electronics business, which once accounted for 70% of its total revenue, and instead focused on the future-oriented entertainment industry. This bold restructuring laid the foundation for future growth and profitability. By 2023, Sony’s operating profit surpassed Samsung’s for the first time in 24 years—an achievement that, while likely temporary, highlights the success of Sony’s transformation and innovation.
Sony's pursuit of innovation has gone one step further. At its recent annual strategy meeting, the company announced its commitment to pursuing innovation beyond industry boundaries, under the slogan "Beyond Boundaries". This is consistent with Sony's recent move into the Web3 space. This report will examine Sony's blockchain initiatives and explore its vision for the Web3 industry. In doing so, we aim to gain insight into Sony's future vision for the Web3 space and its strategic direction.
Sony has actively invested in and developed blockchain technology from its early days. Sony subsidiaries across various industries explore ways to integrate blockchain into their respective fields. The first notable move came in 2016, when Sony Global Education announced plans to develop a blockchain-based digital education platform. The experience gained in developing this digital education platform was quickly expanded into other areas. Sony Music Entertainment applies the technology to authentication, sharing and rights management systems for digital content, including music, movies and e-books. In 2018, Sony Computer Science Laboratory launched a contactless IC card-based hardware cryptocurrency wallet. By 2019, Sony had built a blockchain-based database platform for the Dutch government’s smart city research project.
Sony’s blockchain-related initiatives have accelerated significantly since 2022 and are consistent with the Kishida administration’s policy to promote the Web3 industry. Sony is moving from blockchain research to turning the technology into a viable business model. Recent moves, such as acquiring centralized exchanges, announcing plans to issue stablecoins and launching its own blockchain mainnet, reflect this shift. It is worth noting that Sony boldly expanded into the core areas of the Web3 ecosystem and broke through traditional business boundaries to challenge the Web3 industry. The next section explores Sony's recently announced Web3-related business.
Sony plans to adopt a comprehensive Web3 business strategy covering multiple subsidiaries. This strategy is likely to be built around three key pillars: 1) non-financial sector, 2) financial sector, and 3) infrastructure. The non-financial sector is expected to be led by the Sony Group, especially focusing on leveraging Web3 technology in entertainment and games. Sony Music has already launched NFTs based on its artist intellectual property and is actively exploring the commercialization of music IP through Web3 technology. Discussions on leveraging Web3 in the gaming industry are heating up, as evidenced by recent patents on NFT and SFT technologies. The financial sector is expected to be led by Sony Financial Group, which is currently preparing to spin off from the Sony Group. They will focus on combining Web3 technology with the financial industry, including stablecoins and security tokens. Sony Bank is already conducting research and development on stablecoins and is the first Japanese bank to sell loan bonds as security tokens. Building on this, Sony Financial Group is expected to further expand the application of Web3 technology in the financial sector. Finally, Sony Blockchain Solutions Lab is expected to manage the infrastructure that serves as the foundation for all Sony Web3 initiatives. Although the lab is actually part of the Sony Group due to Sony's controlling stake, it is expected to provide infrastructure services to the Sony Group and Sony Financial Group, acting as a bridge between the two. By efficiently utilizing Sony's assets, the Sony Blockchain Solutions Lab is expected to become a core force in promoting synergy in Sony's Web3 business.