Sony bets on subscription software for image sensors

TOKYO, Jun 29 (Reuters) – Sony Corp. seeks to replicate PlayStation’s success in the image sensor business with the sale of subscription software, to cope with its dependence on a handful of manufacturers in the fickle market for smart phones.

Transforming the light conversion chips into a software platform, essentially similar to the PlayStation Plus video game service, represents a radical change for the company, which built its domain through advances in hardware.

The effort coincides with Sony’s quest for recurring revenue after years of losses in the volatile consumer electronics sector. The success, analysts say, could serve as a response to activist investor Daniel Loeb’s call for the business to transform.

“We have a strong position in the market for image sensors, which serve as a gateway for image data,” said Hideki Somemiya of Sony, who heads a new sensor application development team.

Analyzing that data with artificial intelligence (AI) “would form a market larger than the growth potential of the sensor market itself in terms of value,” Somemiya said in an interview.

Sony has developed what it calls the world’s first image sensor with an integrated AI processor. The sensor can be installed in security cameras, where it can distinguish for example factory workers who are not wearing helmets, or in vehicles to monitor driver drowsiness.

Most importantly, the software can be changed or replaced wirelessly without disturbing the camera.

The Japanese conglomerate expects customers to subscribe to its sensor software service through monthly fees or licenses, similar to that of players who buy a PlayStation console and then pay for the software or subscribe to online services. .

Sony has not disclosed the service start date, but at a press conference last month, Somemiya said there was demand for “retailers and factories.”