New Internet technology was prompting convergence between electronics and entertainment, in which Sony Corp. intends to be a global leader, said chairman and chief executive Nobuyuki Idei.

Spelling out Sony's plans for the 12 months to March 2005, Idei said it would be a year of "perseverance" as the company further trims its workforce and refocuses business priorities so it can better compete in the brave new world expected to hit the sector in a couple of years.

"I think there is going to be a huge change in the electronics industry in 2006," Idei told a news conference.

"As the information gap ceases to exist, the power of each individual has become stronger than in the past when corporate PR still worked, and it will get even stronger in three to 10 years.

"Except for some countries, the era of mass production is being replaced by a power shift to individuals," which would change the way products are chosen, he said.

To meet his challenge, Idei said Sony would converge functions between appliances used in the living room, home office and outdoors.

Interaction would become possible between electronic gadgets like TVs, DVD recorders and personal computers, portable audio players, digital cameras and cellphones.

The Sony chief said his company would continue its three years to March 2006 restructuring programme, which should have a full cost-saving effect of 200 billion yen (1.75 billion dollars) in the following year.

In a bid to compete with Apple Computers in the Internet music download business, Sony has launched its Connect service in the US market.

"I hope eventually we offer a global service," Howard Stringer, vice chairman and chief operating officer in charge of entertainment, told reporters.

"When it's perfect, we can bring it to Japan, but it's not perfect yet."

Asked about reported negotiations to buy Hollywood's MGM studios, Sony executives said nothing had been decided.

Idei said Sony, which already has its own Sony Pictures studios, was dealing with this issue cautiously.

"We will not touch a loss-making business," Idei said, adding Sony would not buy MGM "unless we judge that it is beneficial."

In the year to March 2004, Sony's group net profit slumped by 23.4 percent to 88.5 billion yen, hit by restructuring costs, sluggish computer game sales and a stronger yen.

But in the current year, the company forecast better results with net profit of 100 billion yen and pretax profit of 160 billion yen on sales of 7.55 trillion yen.

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