By Daniel Hunter

Sony has announced plans to spin-off its video and audio units into separate businesses as part of a plan to return to profit within three years.

The units will be spun-off in October.

The Japanese electronics giant is hoping to make a profit of 500bn yen (£2.17bn) by March 2018. It has issued six profit warnings in two years and forecast a 170bn yen loss for the year to March, compared with a 40bn yen loss last year.

On Wednesday, Sony chief executive Kazuo Hirai said the company cannot be afraid to change if it wants to “to grow in a Sony-like way”.

Mr Hirai said Sony will no longer compete for sales growth in the smartphone market, where it has been beaten by the likes of Apple and Samsung.

Instead, Sony will focus on areas it deems profitable, like TV and PlayStation gaming.

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