Posted on Monday, 8th September 2008 by David Cruz
Check out this article from Don Reisinger from CNET about Sony’s future and the Playstation 3.
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.
- Geoff
[Source: CNET]
Tags: Playstation, playstation 3, Sony
Posted in PS3 News | Comments (0)