Sony Group Corp Cedes Control of Home Entertainment Division to TCL Electronics

Sony Group Corp is making significant changes in the consumer electronics landscape by transferring majority control of its home entertainment division, which includes the celebrated Bravia television brand, to its Chinese competitor TCL Electronics.

This action signifies a notable transition for the Japanese technology powerhouse. On January 20, Sony confirmed its plan to sell a 51% share in its home entertainment segment to TCL. The two companies are set to create a joint venture, aiming to commence operations in April 2027.

ソニー株式会社 | ソニーとTCL、ホームエンタテインメント領域における戦略的提携に関する基本合意
— Sony – Japan (@SonyGroup_JP) January 20, 2026

Strategic Partnership with TCL

Kimio Maki, President and CEO of Sony Corporation, expressed satisfaction over the agreement, stating that the partnership aims to merge the strengths of both companies to generate new customer value in home entertainment, thereby providing an enhanced viewing experience for global consumers.

What Happens to the Bravia Brand

According to the new arrangement, televisions will still feature the ‘Sony’ and ‘Bravia’ branding. However, they will incorporate TCL’s display technologies. This collaboration allows Sony to retain its brand presence while alleviating the burdens of high manufacturing costs and slim profit margins that accompany hardware production.

Shifting Market Dynamics

Sony’s decision mirrors a trend among Japanese firms that are either withdrawing from the television market or downsizing their operations. In recent years, companies such as Toshiba, Hitachi, and Pioneer have exited the sector entirely, unable to contend with the competitive pricing and swift manufacturing capabilities of their Chinese and South Korean rivals.

Focus on Content and Innovation

Once a leader in consumer electronics, Sony is now redirecting its focus towards intellectual properties. The company is concentrating on high-growth sectors like PlayStation gaming, anime, music, and film production. Partnering with TCL allows Sony to emphasise its software and entertainment services while safeguarding the Bravia brand as a premium option for consumers.

TCL’s Strategic Gain

This agreement represents a significant achievement for TCL. Already one of the largest television manufacturers globally, the Chinese enterprise will now benefit from Sony’s esteemed engineering background and worldwide brand recognition.

The transition is anticipated to be completed by March 2027, with the first co-produced television sets expected to launch later that year.