It's time for Sony to downsize
With last week's news that Sony was forced to recall 438,000 Vaio laptops over burn concerns, it got me thinking about Sony, its place in the tech industry, and what's really going on at this once powerful company.
Sony's stock price is down more than 30 percent this year as its Vaio laptops fail to captivate audiences, its Playstation 3 still lags behind the competition, and its ill-fated attempts at holding on the Walkman brand have proven detrimental to its growth. And all the while, the company believes that it's doing everything right and it can hold on to its position as the single company in the industry that can release products in practically every market and be successful.
For years, Sony was successful because it brought high-quality products at an affordable price to store shelves. As it gained in popularity, the company was able to rely more on its name and solidify its brand as the single most popular in the entire industry. But as that happened, I feel like Sony lost its way.
When we rank some of the best products in each market, Sony once came to mind in every instance. But right now, I'd say that Sony is only in the top five in HDTVs, Camcorders, and gaming. Everywhere else, Sony products need not apply.
With that in mind, it's time Sony forget about being the company that releases products in every single market and start working on offering only those products that people want. If Sony relies on its name for too much longer, it may lose all the credibility it once enjoyed.
There's no debating the fact that Sony is an extremely profitable company. Last year alone, the company realized a net income of almost $4 billion. But that doesn't mean that everything is going well for Sony. Sony is a mainstream brand, a household name. How much longer can it release products that are barely useful before it's forced to call it quits in some markets?
I've had the opportunity to use a slew of Sony products and compare those to others in the respective market. Aside from camcorders, HDTVs, and gaming, Sony doesn't stack up nearly as well as it used to. Cell phones? No. Computers? Irrelevant. Digital cameras? No way.
Taking all that into account, we can't downplay the fact that Sony products still sell extremely well. Some say it's because Sony knows how to market a product. I think it's based solely on the fact that Sony is on the top of everyone's mind when they go to the store.
I can't tell you the number of times I've spoken with someone about buying a certain product, only to be looked at with a quizzical look and be asked if Sony has a product in that market. Worse, I hear people look for digital cameras and as soon as they see Sony's digital camera, they put the Canon down and opt for the Cyber-shot. We may know that Sony products aren't necessarily the best, but the mainstream has no clue. They see Sony's brand and they buy it.
But how much longer will that last? Once those people bring Sony's digital camera home and compare it to their neighbor's Nikon, will they really want another Sony product?
Evidently, the answer is no. Sony's market share in key markets like the PC industry and the cell phone market have been nominal at best, and there's some indication that the vitality of the Sony brand is diminishing as it slowly but surely falls from top of the best-selling list.
Sony has relied on its name for too long. The company needs to get out of those markets where it's barely relevant and become a more agile company that's capable of putting its money into those endeavors that matter most. Being an also-ran isn't acceptable anymore for Sony and it needs to start realizing that the future is in being the best in every market it competes in.
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Don Reisinger is a technology columnist who has written about everything from HDTVs to computers to Flowbee Haircut Systems. Don is a member of the CNET Blog Network, and posts at The Digital Home. He is not an employee of CNET. Disclosure.
I pretty much agree with most of what you say.
peace!
Sony's new line of notebooks look to be better. The CR series was bright and colourful, however it was thick and heavy, too bulky to carry around on campus. The new SR series is MUCH better. However, only offering Windows Vista will put off many. It's put me off, I would jump in line to get a SR, but no Linux or option. Happy to see Dell is offering Ubuntu on some systems. Probably going with them next time around.
And the Mojave experiment is one big lie, i hope people look closely at the fine print and realize Microsoft is purposefully misleading the public with the results.
http://tinyurl.com/5n533j
IMO we see the top of the wave and not the "needed" undersea.
I'll put an example.
Someday, several (too many, maybe) years ago Sony decided to develop the "dvd replacement".
You have to put a lot of money, better said, to risk a lot of money to do that (ask Toshiba).
Think about that the CD was developed by Sony and Phillips... both of the same kind of dinosaur beasts companies.
So, maybe Sony can separate itself in different branches or you just can measure the evolving of its different parts with different measurement-sticks.
If we use the "branch recognition" stick, you are right.
(On the other hand, no one pay attention at the "Music/TV/Movies" Sony's branch! You just see the players and the movies!)
I trace their downfall back to the late 80s when they bought Columbia. By the late 90s they were making huge profits from PS Software. So Software and Content became more vital to them than Hardware. The next problem was Sony always trying to control media formats ever since the days of Betamax.
Then perhaps the final nail in the coffin was the shift from mainly analogue based CE to a totally digital based CE industry. This gave rivals like Samsung, Toshiba and LG the chance to start afresh. Of course Sony was so strong in the analogue days that they were slow make the shift.
That was a different era and Sony doesn't define the Industry or even one product category anymore.
Don Reisinger makes (and loses) his living writing articles wherein he gives advice to profitable companies about how HE thinks they can make more. He got fired from Ars Technica because the readers there kept calling him on his bullskyte. Apparently there are no such problems at CNet...
I purchased a Sony Vaio desktop and in three years, I have watched it literally fall apart. Pieces break and fall off and I always take great care of my computers. Sony technical support in India was terrible and now it is in the Philippines. I have used Microsoft technical support in China and India and it has been flawless so it proves that old adage, "You get what you pay for."
I would not buy a Vista computer so I now own a Mac running Leopard and I owe Sony a "Thank you" for making me switch. Apple quality is great and Apple Care is amazing. No more Sony for me.
Listen, LG can make everything from monitors to washing machines, and be a leader, not suffer from being too spread out, so I think Sony can do it.....
Why isn't Don Reisinger picking on one of the many companies that don't stand behind their products?
good luck sony. ps2 is the last thing we purchased and we refuse to purchase anything you produce until you change your coporate nazi ways
Wow, that's some professional and scientific analysis there Don. I don't suppose it's too much to ask that a professional writer might actually use some numbers or facts or something other than what appears to be a "gut feeling" to support their claims?
"With last week's news that Sony was forced to recall 438,000 Vaio laptops....". Check out the Ars Technica comprehensive investigation into the Microsoft XBox 360 defect issue. Talk about a company that should stick to what it knows! Out of fairness, your next silly rant should be titled: "Why Microsoft should stick to software development instead of shoveling crappy defective hardware to the masses". Perfect example Microsoft's "Sell now, fix later" software mentality.
Recalling the labtops was simply the right thing to do, so they did it.
I give nothing but kudos to companies that take initiative with recalling their mistakes.
They earn my trust.
What does this mean? Sony doesn't make cars, or food, or industrial gasses, or energy, or doorstops (although the PS3 probably qualifies). Sony makes movies, music and electronics. One of the things (among many) Sir Howard has done well is too streamline the electronics division. Now if they just sell PlayStation before the end of the game console era (next Tuesday), they'll be OK.
- by wingnetengineer October 25, 2008 8:43 AM PDT
- I am in the same boat as others. SONY was the best, and lasted forever. I own a 2000 and 2004 CRT based HDTV (3 sets) from them and the quality is not up to par with their reputation. They all have so many service bulletins out for minor to major failures it is rediculus. When I tried to get them to repair my $3200 Wega that was 2 years old with major failures and design defects ( which they knew about ),
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(20 Comments)SONY just left me and thousands of others out in the cold. They are more interested in Rootkits,DRM and controlling the media interests than standing behind their products. Atleast when your car has major defects you get a letter from them stating they want to make good on it, and not an excuse "we cannot forsee failure in electronic hardware". My god, they put sets out there with the CRT's improperly made and creating blob like image spots on them. My PIONEER Elite from 1994 runs like the day I got it, unlike the SONY sets we have (all which were free besides the 32"WEGA, which is a paperweight in my garage). Even my 27" Mitsubishi from 1985 still runs like new!