Friday, January 31, 2014

Uh oh, Sony. Get it together.


This post over on Bloomberg discusses very, very low ratings for Sony's stock. Sony, for as big a company as it is, is facing some of the same troubles that plague Microsoft. As consumer technology moves into the devices and services sector, Sony has had trouble keeping up since their flagship products have been in audio, video, digital cameras, and traditional PCs. All of those are being hit hard because of massive marketplace shifts and so much new competition. Their entertainment division isn't doing so well either, although it's on much better footing than electronics.

To be fair to Sony, they are a huge organization and not designed for agile shifts in direction. Additionally, their products, while outstanding in terms of build quality and design, are premium. Apple can afford to do that, Sony can't. They have already scaled back production of TVs, and sold their spectacular building in NYC for over $1 billion. Even with that massive sale, it's a short term solution.

I have faith in Sony. They need to shift into the D&S much more heavily than they are now, and really push their tablets, phones, and even laptops. They're all top-tier products but the company is too big to be kept afloat by TVs and consoles alone.

8 comments:

  1. I also believe that Sony needs to promote their PS4 more because Xbox One has been gaining momentum since Christmas has ended. To give an example, I had ever intention of getting a PS4 rather than a Xbox One for the holidays. I went to various stores and every clerk told me that PS4 inventory is low and to come back. I found that insane because while Sony's new product was limited, Microsoft Xbox one was stocked everywhere I went. I eventually gave up and purchased the Xbox one. Just another example on Sony's miss opportunity.

    -Devin Atkins

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    1. Devin,

      I for one am glad you purchased an XBOX one. I think both products are by far the best. However they separate when it comes to online play and experience. I think XBOX offers a complete experience when the game is over. Sony has failed it's customers in that space many times and did not handle hacked accounts well either. The point I need to make quickly here is, when companies miss opportunities to get it right they should pay. Ask Microsoft about it's marketing woes. Our instructor Professor Darrenberg mentioned the zune and the system Microsoft had for flat fee to use all the music you wanted plus 20 free songs you can keep each month. Great offering poorly marketed equal missed opportunity. You should not feel sorry for Sony. Companies need to be rewarded on merit, not blind loyalty.

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  2. I have always been impressed with the quality and performance of Sony TVs, desktops and laptops. Competition is fierce these days and I hope that SONY will be more agile in trying to reach the consumer with it's products.

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  3. I find this article interesting since every television and DVD player in my house use to be Sony. For years now I would only purchase Sony TV's. The quality was great and I never was dissatisfied. In having everything Sony from TV's to DVD's and even the surround sound system it all connected well and worked great together. The one remote would work on everything. As times changed I noticed Samsung was rated the top TV brand. So, after doing my homework and comparing I just recently purchased a Samsung television. It's taking a little getting use to but so far so good. I still think the Sony brand is good but they need to step up their game.

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  4. This post at first read makes me a little sad. I happen to own a Sony big screen TV as well as a Sony Vaio. Generally, speaking both products have been very good at meeting my needs. Like you noted they are built with quality, and personally I have no problem paying a small premium for their products. However, with this being said I understand that to stay relevant you need to be competitive in the market. This means making the necessary technological changes to keep a competitive advantage. I have my fingers crossed for Sony!

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  5. I have never been a Sony fan per say. I just think it is a big brand with not much umpf to back it up. I think that if you aren't looking at Sony high end, the rest of their stuff sucks. I wouldn't mind seeing them fail or break up some of their products and focus on things they can really excel with.

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  6. My dad owned an electronics repair store when I was a kid; he mainly fixed computers and VCR's. This made him a bit of a snob when it came to the electronics in the house. Everything in the house was Sony, he just thought they made the best product. For years, all my electronics were Sony.
    After reading this, I am sad to say that I cannot find one Sony product anywhere in my house. However, I am not crying for Sony. I have every faith that they will turn things around and I am anxious to see what product they develop next.

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  7. I think I am too biased to answer this question, because I am a loyal XBOX fan and think the PlayStation great visually and nothing else. When I think of Sony the only positives I can think of are associated with their TV's. That is about the only product I would buy from their brand. To me they have some great quality products, but are too expensive. With that being said, they don't have the marketing to go with those products. For instance Apple, their products are more expensive but they have unbeatable marketing campaigns to help with that.

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