What Is Sony Now?

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Shawn128

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I just finished an article that gave an interesting and sober look at Sony as a company, both past and present, through the eyes of Sir Howard Stringer.

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Link

Some choice quotes:

There’s more to Sony’s problems than acts of God and currency traders. The maker of the Walkman and the Trinitron hasn’t driven pop culture for years. Sony thrived in an era of stand-alone electronics. When the Internet arose and digital began to mean connected, iPods became the center of people’s entertainment lives, then smartphones and tablets—which Sony was late to produce. Even the quintessential Sony product—the TV set—has become a millstone. Sony has lost nearly $8.5 billion on TVs over eight years and expects to keep losing at least into 2013. Samsung, Vizio, and other upstarts have driven prices so low that one Sony executive says the company charges less for some TVs than it cost to ship them a few years ago.

Sony has been trying to adapt to the Internet Age for at least a decade, yet remains a gargantuan and unwieldy manufacturer, with 168,200 employees, 41 factories, and more than 2,000 products from headphones to medical printers to Hollywood-grade 3D movie production equipment. Jeff Loff, a senior analyst with Macquarie Capital Securities in Tokyo, points out that Sony sells nine different 46-inch TV models in the U.S. and its mobile-phone joint venture with Ericsson offers more than 40 handsets. “Can you imagine how dilutive that is to your R&D?” he says. A Sony spokesman says the number of phones is being reduced, and notes that Samsung has 15 different 46-inch TVs.

Stringer drew up a plan to streamline Sony by creating marketing, software, and other platforms common to all the businesses. Progress was slow. He finally determined it was because he wasn’t really in charge of electronics; Chubachi, the president, was. “President” can be a powerful title in Japan, connoting the day-to-day authority typically commanded by a chief operating officer in the West. “I didn’t know I wasn’t [in control],” Stringer says, a hint of sheepishness in his voice. “I just thought it was a natural part of Japanese companies to be consensus-driven and I had to spend a lot of time trying to achieve consensus.” He lost a year.

As summer went on, the 34-year-old analyst became more inclined to agree with the sales staff. His reports got crankier. In an Aug. 30 report titled “Pushing Reset,” he downgraded his rating to “neutral” and noted something remarkable. For the past nine years, the business that has accumulated more profit than the rest of Sony combined is financial services, mostly life insurance, with some auto insurance and banking. “Sony,” Loff says, “is a life insurance company with a money-losing TV business.”

Your thoughts?
 
They are an electronics company, they always have been. What were they supposed to be?
OP does a good job of letting you know that.
For the past nine years, the business that has accumulated more profit than the rest of Sony combined is financial services, mostly life insurance, with some auto insurance and banking. “Sony,” Loff says, “is a life insurance company with a money-losing TV business.”
 
Man, Sony better do something to stop the hemorrhaging. It's not just televisions, it's other consumer electronics too. It's like they have no direction and don't know what to do.
 
I've always wanted Apple to buy Sony so I could write an article with the following headline:

"Sony Had Them Apple-Bought-'Em Genes"
 
Samsung mostly kind of killed them off as a display producer and tv seller.

The other problem is mostly that the market has spoken and people like cheap shitty TV's.
 
In my mind Sony just needs to streamline each division more. Each consumer electronic division needs 3 tiers low mid and high based on specs. Same brand name. Excluding the playstation brand as it was more successful on it's own.

I think the 3 tiered approach msft had with arcade, pro, and elite 360's actually would work with every other consumer electronic outside the video game industry. If Sony used that model for Tv's, phones, cameras, camcorders, etc,. each under their own branding it could actually work.
 
Sony should scrap as much bullshit as possible. Just make a few kinds of tv's, a few cellphones, etc. None of this 'more is better' stuff. Why do I need the choice between 20 Sony televisions that are almost exactly the same? Trim it down to one line, offer it in a few sizes and position it as a premium brand.

The Sony brand is still a powerful one, they should use that. Don't try to be a Samsung with cheap stuff, become a real premium brand, one people trust. I still value my Sony stuff over others. I trust them to deliver good laptops with the Vaio line, good tv's with Bravia, etc.

And integrate that stuff with eachother. I should be able to buy content in your PSN-store and watch it on my Sony tv, cellphone, PlayStation, etc. I know they are working towards that, but they are taking way too much time with it.
 
Sony's fucked, many articles have been written about this but their 10/5/3 year plans all failed and a ton of skilled engineers left. After they leave Sony they start shouting about how they already invented the iPad or Smartphone or whatever but Sony's corporate culture held them back. Without people like crazy ken the company is just ... boring. What Sony needs most is an identity, something or someone that makes Sony Sony that replaces the 'Walkman' as their legacy. The PlayStation 2 and Ken Kutaragi were those 'things', none of their current products or executives are.
 
You mean the GM that is making billions in profit?

Only because they are still being propped up by over $22 billion dollars of government money. Their stock has lost 37% of its value in a year, and their sales forecasts are still absurdly low.

So I guess Sony's solution is to go bankrupt and then reply on the government to prop it up.
 
They need someone to come in there and do what Jobs did when he came back to Apple:

He killed-off everything that was distracting them from their key goals. (Laser Printers? PDAs? Cameras? Gone.) Streamlined their product lineup down to the bare basics. (There were like 30 separate models of Macintosh at the time.) Painful stuff, but absolutely crucial.

Just like Apple, Sony can't compete on the budget scene. They should try to reclaim their status as a premium brand, and make good on it.

Maybe they should spin-off their media divisions into a separate company, too. They're extremely proud of their media holdings, but those holdings hold back their innovation with too much in-fighting over control.
 
I guess then my cheap shitty Samsung TV is pretty fucking good

The best T.V's are arguably made by sony, that is if you are ready to empty your bank vault.


They need someone to come in there and do what Jobs did when he came back to Apple:

He killed-off everything that was distracting them from their key goals. (Laser Printers? PDAs? Cameras? Gone.) Streamlined their product lineup down to the bare basics. (There were like 30 separate models of Macintosh at the time.) Painful stuff, but absolutely crucial.

Maybe they should spin-off their media divisions into a separate company, too. They're extremely proud of their media holdings, but those holdings hold back their innovation with too much in-fighting over control.

Kaz is the man, Stringer took Sony on a downward spiral.
 
Sony used to be the go-to for premium, reliable products. Now they're a sinking ship that wastes too much money on novelty garbage. Whatever Sony is now, they need to do less of this:

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And more of this:

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Sony used to be the go-to for premium, reliable products. Now they're a sinking ship that wastes too much money on novelty garbage. Whatever Sony is now, they need to do less of this:



And more of this:



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I thought that laptop was just featured as an example of a overpriced under-performing product that is languishing due to a lack of innovation.
 
Sony used to be the go-to for premium, reliable products. Now they're a sinking ship that wastes too much money on novelty garbage. Whatever Sony is now, they need to do less of this:

They're one of those companies that green-lights any "cool idea".

They get some awesome R&D out of it, but damn is their product lineup a mess.
 
Went to shit after Ohga resigned and Idei took over.

Yen is killing them.

Inevitable merger with Panasonic is edging closer.
 
The best T.V's are arguably made by sony, that is if you are ready to empty your bank vault.




Kaz is the man, Stringer took Sony on a downward spiral.

Kaz and Kutaragi are responsible for the PS3 white elephant. Wrecking the most important division by focusing on building a tech Titan but expecting that, not content, to drive sales.

Consumer electronics are merely a vector to access learning or entertainment. Effectiveness in that is key for Sony. Despite everything Kaz's PSN is a pale imitation of what it should be and has had the broadest security and PR disaster of the download era. Why wouldn't I go to Amazon, Apple or the inevitable competitors instead?
 
I think they're in a better position now than they were a few years back, but it still isn't pretty. They need to consolidate their lines entirely. There's too many phones, and too many TVs to push any sort of marketing campaign. It does seem they're getting the message though, as the plan is to drop all feature phones, and solely focus on smart phones. Though, I expect them to release 3 dozen different Xperia sets.
 
I think their biggest failure has been on the software/media side.

How many music, video, etc stores have they had over the years? How many names have each of those stores had?

They have incredible content but constantly fuck up the implementation.

FFS they think this is a viable idea that will make people want their tablet....

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Agreed. Sony failed to adapt to the modern era of electronics as content delivery devices, and are paying the price.
 
Their TV sector is in a pretty sad state, and I'm really not sure what they can do.

Commoditization, Korean manufacturing costs, and a strong Yen have pretty much fucked them. They can't compete on price at the low-end ... aren't really all that better off in the mid-end (particularly vs Korean companies) ... and because of all their losses, are scared to invest in the high-end.

That last part especially is distressing. It's actually quite bad for consumers in the long run given how many advances they've made in the past.


Hell, they aren't even using the Sharp UV²A panels in their 'high-end' units this year ... and the product is suffering because of it.
 
Kaz and Kutaragi are responsible for the PS3 white elephant. Wrecking the most important division by focusing on building a tech Titan but expecting that, not content, to drive sales.

Consumer electronics are merely a vector to access learning or entertainment. Effectiveness in that is key for Sony. Despite everything Kaz's PSN is a pale imitation of what it should be and has had the broadest security and PR disaster of the download era. Why wouldn't I go to Amazon, Apple or the inevitable competitors instead?
I think blu-ray is to fault with PS3 not Kutaragi. If he was allowed to release the PS3 he wanted they would be in better shape. Blu-ray was the reason for $599 not CELL. Blu-ray wasn't worth it, hurting your best brand in order to a win format war...

Pretty funny that Toshiba help Sony and IBM develop CELL yet battle PS3(blu-ray) with HD-DVD.
 
Hell, they aren't even using the Sharp UV²A panels in their 'high-end' units this year ... and the product is suffering because of it.

What are they using this year? I'm guessing Samsung. I got a 55HX929 this year. Only thing that is wrong with it is blooming.
 
I think blu-ray is to fault with PS3 not Kutaragi. If he was allowed to release the PS3 he wanted they would be in better shape. Blu-ray was the reason for $599 not CELL. Blu-ray wasn't worth it, hurting your best brand in order to a win format war...

Pretty funny that Toshiba help Sony and IBM develop CELL yet battle it with HD-DVD.

Blu-ray definitely ballooned the PS3's price, but it isn't the sole reason. CELL wasn't cheap, and the high quality construction of the PS3 certainly added to the cost of production. Simply put, the PS3 was horribly over engineered. And I place that blame largely on Kutaragi's shoulders, though I'm sure everyone at Sony are responsible for some of the blame.
 
I think blu-ray is to fault with PS3 not Kutaragi. If he was allowed to release the PS3 he wanted they would be in better shape. Blu-ray was the reason for $599 not CELL. Blu-ray wasn't worth it, hurting your best brand in order to a win format war...

Pretty funny that Toshiba help Sony and IBM develop CELL yet battle PS3(blu-ray) with HD-DVD.

But I think PS3 as a media centre is the goal, not as a game system. Being a video player, game station, streaming device, home network hub etc. is the key. I just believe Sony is not delivering on this fast enough. They are a major entertainment company with a console on 50 million homes. How are they not at iTunes level yet? Why is smartphone integration still relatively new? Why were they getting Netflix about the same time as MS and Nintendo of all companies. Dedicated game devices are over.

Similarly while blu ray fits in with this goal. The Cell and it's r&d does not. The pricing did not. The initial positioning did not.
 
Blu-ray definitely ballooned the PS3's price, but it isn't the sole reason. CELL wasn't cheap, and the high quality construction of the PS3 certainly added to the cost of production. Simply put, the PS3 was horribly over engineered. And I place that blame largely on Kutaragi's shoulders, though I'm sure everyone at Sony are responsible for some of the blame.
You blame Kutaragi, I blame the Sony CEO at the time. No one man should have all that power. Losing billions is seriously bad business.
 
Sony HDTV's seem to cost several hundred dollars more than the equivalent Samsung model, how the hell are they losing billions of dollars?

I always figured Sony was making a healthy profit on their TV business especially considering all the "Free PS3 with Bravia purchase" deals they do.
 
I think blu-ray is to fault with PS3 not Kutaragi. If he was allowed to release the PS3 he wanted they would be in better shape. Blu-ray was the reason for $599 not CELL. Blu-ray wasn't worth it, hurting your best brand in order to a win format war...

Pretty funny that Toshiba help Sony and IBM develop CELL yet battle PS3(blu-ray) with HD-DVD.

So true. In the beginning HD-DVD was better in my mind with the it's features, but Sony really pumped a lot of energy and money into making sure bluray wasn't betamax part duex. Wonder how much of that bluray focus put them into the position they are in today?
 
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