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NY Times: Sony is in "the fight for its life"

tinfoilhatman

all of my posts are my avatar
LOL @ this thread, unless Sony makes REAL changes(as in firing the entire executive team and change the company culture by 180) they are going the way of the dinosaurs, if anyone here is delusional enough to think that they can compete with Microsoft or Apple on an innovation or software front I seriously doubt your ability to step back and look at whats happened over the last few years and future trends.
 

stilgar

Member
sony even stated that microsoft protects an inferior product

http://au.ps3.ign.com/articles/119/1192539p1.html

Tell me more of your researches

I'm interested


LOL @ this thread, unless Sony makes REAL changes(as in firing the entire executive team and change the company culture by 180) they are going the way of the dinosaurs, if anyone here is delusional enough to think that they can compete with Microsoft or Apple on an innovation or software front I seriously doubt your ability to step back and look at whats happened over the last few years and future trends.

Guys, stop discussing.
We've got an in-depth look at Sony's weaknesses here (he's an expert)
 
26343702doom-00000-jpg.jpg

image.php

That's the doom.
 
Apple is the model for revitalizing a brand. Apple was a joke in 1997 and dying. Sony needs to do what they did. Focus on a few core brands. Have only a few models of TV, a few models of cell phones, etc. If they have to, just ditch everything but their movie studio, financing division and video game division. Those seem to be the big money makers.
 

stilgar

Member
He's right though, the company culture is the problem. There needs to be a change and changing a company's culture is one of the hardest things for a CEO to do.

I'm sure the problem is deep. But if the 2000's have taught us something that is how a big company can drastically change for its survival.
 

acksman

Member
In many ways Sony mirrors Kodak in about another 5 to 10 years if they are not able to restructure fast enough.

Both companies are tangled in a myriad of stretched out products that do not have any synergy to their other brands.

Both have dying or dead technology paths that they keep trying to re-brand or "innovate" when that technology is dying or dead and they are not able to see it.

Both are bleeding money like a sieve in areas they just need to cut the appendage off and throw it away. Sony is trying and I feel is doing a bit better job than Kodak in this area.

Both have this following inside and outside of the company of fond memories when they were king and it blinds many to think they can easily do it again, if they just put some "marketing" behind their name and throw it to the masses.

Again, Kodak is way ahead of the cycle than Sony. If Sony can learn from Kodak's mistakes and focus on what is working (insurance, music rights (although this is dangerous), acquisitions. It may not be sexy, but Sony has to get over that, because Kodak could not let it go. They were an icon, but that is gone. Sony could be next.
 

impact

Banned
LOL @ this thread, unless Sony makes REAL changes(as in firing the entire executive team and change the company culture by 180) they are going the way of the dinosaurs, if anyone here is delusional enough to think that they can compete with Microsoft or Apple on an innovation or software front I seriously doubt your ability to step back and look at whats happened over the last few years and future trends.
/thread
 

knitoe

Member
Apple is the model for revitalizing a brand. Apple was a joke in 1997 and dying. Sony needs to do what they did. Focus on a few core brands. Have only a few models of TV, a few models of cell phones, etc. If they have to, just ditch everything but their movie studio, financing division and video game division. Those seem to be the big money makers.

Apple got lucky with the iPod, and then, hit it out of the ballpark with the iPhone. Sony needs to get lucky with a new product to rebuild their name and get back into the game. With the way Sony is run, I find it hard to see that happening.
 
LOL @ this thread, unless Sony makes REAL changes(as in firing the entire executive team and change the company culture by 180) they are going the way of the dinosaurs, if anyone here is delusional enough to think that they can compete with Microsoft or Apple on an innovation or software front I seriously doubt your ability to step back and look at whats happened over the last few years and future trends.
If Sony effectively spun off SCE and allowed them more independence from the larger group, they could probably turn things around pretty fast, relatively speaking. Just make their hardware guys act as a pure subordinate to their game division client, so as to divorce it from the meddling influence of other initiatives within the corporation. Let the game division dictate and delegate the research and development of both the hardware and software system. I hope that the failings and general weaknesses of the PS3 as well as Sony's many mistakes with how they handled it are directly addressed for the next and maybe last chance for the Playstation brand. PS4 or whatever is like what the Dreamcast was for Sega, IMO, so it had better not just be a basic extension of the current direction from Sony, since we all see how that's been working for them. Anyway, I want them to try some crazy shit because they've got no reason to be conventional in their focus even if the hardware is.
 

Clear

CliffyB's Cock Holster
Stumpokapow said:
Their argument: Hardware in their traditional product lines is being commoditized, Sony is not well positioned to compete in a commodity market because their costs are higher than other cut rate south-east Asian firms, Sony thus cannot compete on hardware

I'm not sure how that's somewhat odd. Either hardware is being commoditized and they're right, or hardware is not being commoditzed and they're wrong. Either way, the logic of their argument is internally sound (IF their premise is true, THEN their conclusion is true).

You seem to be mixing up criticisms of the external validity with criticisms of the internal validity of the argument.

Totally agree with your first paragraph, but identifying the problem isn't a solution in itself. And solutions are what Sony is badly in need of.

Essentially what we're talking about is strategic divestiture of assets and product-lines in order to double-down on key profitable market areas. This is precisely the approach Hirai is publically taking, with the big question being whether his measures will be enough to stop the rot?

From what I've read and understood, the analysts favour a far more radical agenda with an endgame resulting on a minimal set of product offerings.

My argument is that while rapidly divesting these assets in a hostile market would be a good short-term fix, the end result just makes them less competitive in the long-run, because they'll have fewer resources with which to create new breakout product.

It just seems wasteful to me to jump straight to scorched-earth when they have (at least in theory) such a stockpile of technological experience being underutilized.

My comment about it striking me odd was really just a reaction to using Apple as a model, when as a companies their history and trajectories seem to coming from opposite directions.
 
If Sony effectively spun off SCE and allowed them more independence from the larger group, they could probably turn things around pretty fast, relatively speaking. Just make their hardware guys act as a pure subordinate to their game division client, so as to divorce it from the meddling influence of other initiatives within the corporation. Let the game division dictate and delegate the research and development of both the hardware and software system. I hope that the failings and general weaknesses of the PS3 as well as Sony's many mistakes with how they handled it are directly addressed for the next and maybe last chance for the Playstation brand. PS4 or whatever is like what the Dreamcast was for Sega, IMO, so it had better not just be a basic extension of the current direction from Sony, since we all see how that's been working for them. Anyway, I want them to try some crazy shit because they've got no reason to be conventional in their focus even if the hardware is.

PS4 doesn't have to be some crazy out of this world shit. I don't know why people think SCE is in some do or die situation with the next console. They lost a lot of money with the ps3 but they're well positioned now moving forward. They just need to focus on delivering a solid product. Looking at their approach to the Vita, I think they will.
 

Shanlei91

Sonic handles my blue balls
they have ruined this gen with
timed dlc
Protecting an inferior product
abusing indie devolopers
DLC
Multiple disk games
kinect
Arrogance
This is the only thing I'm angry at them for, assuming this is referencing the RROD. The whole RROD ordeal gave me such a headache.

Edit: How did I miss writing anything on topic? My mind thinks I'm on Gamefaqs. I'm kind of disappointed in Sony's hardware division. Looking for a TV a few years back I found it mind boggling that every site I looked up said "go with the Samsung, the Sony has issues", while the Samsung was hundreds of dollars cheaper.

And I still can't figure out what is going on with their attempt at a PSP-Phone. Years of rumors, while Apple established a gaming market, hooking everyone onto touch controls - then the ill supported digital only PSPGo is released, followed by the eventual "PSP-Phone" that turned out to be a buggy Android Phone with a Dpad, that doesn't support any of the PS Store content I already purchased. As a consumer, it sometimes feels like they're just playing around.
 

1-D_FTW

Member
Apple is the model for revitalizing a brand. Apple was a joke in 1997 and dying. Sony needs to do what they did. Focus on a few core brands. Have only a few models of TV, a few models of cell phones, etc. If they have to, just ditch everything but their movie studio, financing division and video game division. Those seem to be the big money makers.

The problem is, moments in history where things radically change don't come along that often. Jobs basically build the entire ipod/iOS empire around the disruptive nature of the internet. It was a market refresh where all the old rules got thrown out and the market was re-opened for the most innovative to restake the boundaries. Apple and Google obviously seized on this better than anyone in the world. You could easily make the argument MS was only slightly less inept than Sony (just that their monopolies on the Windows OS/Office cash cows weren't something that could as easily erode overnight). At this point, the most appealing thing about MS' future is their patent arsenal.
 

KageMaru

Member
Wow this thread turned ugly. Was expecting a discussion on Sony's past, present, and how things can change for the future, but what do I see? System wars =/

It's been almost 7 years since this gen started, don't some of you get tired of forcing these tired arguments into these discussions?
 

Oppo

Member
The definitely have problems. I do think Hirai has a good grasp of this though. It just takes time to turn a ship this size.

The PS Suite released today, that's exactly the sort of thing they should be doing to adapt to the modern mobile environment.

Sometimes pressure is good. I've seen a few big companies perform well in panic-mode (Apple, Nintendo).
 

Days like these...

Have a Blessed Day
Wow this thread turned ugly. Was expecting a discussion on Sony's past, present, and how things can change for the future, but what do I see? System wars =/

It's been almost 7 years since this gen started, don't some of you get tired of forcing these tired arguments into these discussions?

Thank the posters who started the ridiculous "I love sony more than actually playing vidya games and I'll quit if they go belly up" I'm actually picturing them with their arms crossed pouting at their computers
 

Combichristoffersen

Combovers don't work when there is no hair
The definitely have problems. I do think Hirai has a good grasp of this though. It just takes time to turn a ship this size.

The PS Suite released today, that's exactly the sort of thing they should be doing to adapt to the modern mobile environment.

Sometimes pressure is good. I've seen a few big companies perform well in panic-mode (Apple, Nintendo).

Apple had Jobs to steer the ship, and Nintendo.. well, it's Nintendo. I honestly don't think Sony has anything like a Jobs or the patented Nintendo Crazy™ to make it a visionary company again, sad as it may be. I do hope they'll manage to save the company from going belly up though.
 
Agreed.

For those who say they dont care if Sony is gone, would you care if the roles were reversed and it was Ninetendo or Microsoft that was gone?

Wouldn't give a shit. Playing on my NES I never thought I'd play on a "Sony" gaming machine. Playing on my Dreamcast I never thought I'd play on a "Microsoft" gaming machine. Playing Snake on my Nokia or Bejewelled on my Motorola I never thought I'd be playing Grand Theft Auto III on my "Apple" phone.

Games will keep coming whether the machine is made by GE or Samsung or McDonalds. The developers will always want to continue making games as long as there is a demand.

Let the hardware makers fight over specs, as long as I still get games I'm golden. I don't hold my allegiance to any billion dollar company and they don't hold theirs to me.
 
If Sony effectively spun off SCE and allowed them more independence from the larger group, they could probably turn things around pretty fast, relatively speaking. Just make their hardware guys act as a pure subordinate to their game division client, so as to divorce it from the meddling influence of other initiatives within the corporation. Let the game division dictate and delegate the research and development of both the hardware and software system. I hope that the failings and general weaknesses of the PS3 as well as Sony's many mistakes with how they handled it are directly addressed for the next and maybe last chance for the Playstation brand. PS4 or whatever is like what the Dreamcast was for Sega, IMO, so it had better not just be a basic extension of the current direction from Sony, since we all see how that's been working for them. Anyway, I want them to try some crazy shit because they've got no reason to be conventional in their focus even if the hardware is.

The PS3 is currently the console selling the best in two regions. They lost a huge amount of market share to the Wii and 360 but I don't think the future is that bleak for the PS4. All they need to do is price it competitively to make inroads on the US market and it's likely they'll regain the number one position. They will never regain the same kind of dominance as the PS2 days but they won't go the way of the Dreamcast either.
 
Hopefully Sony can turn it around, not sure if this affects future consoles but I loved all their consoles, Microsoft came into this game extremely aggressive and you have to respect that.
 
Sony can start by saying "Our next TV model will be THE SONY TV. It will pack in all the latest and greatest features and be available in X Y and Z inch models. We will discontinue almost all our other TVs because this is the best TV in the world and the primary one that we will sell." Do something similar to that for all their product lines.

With videogames, which are their core money maker now, they already do that. They have PS2 and PS3. Two models for consoles and PSP and Vita, two models for handhelds. They need to take this philosophy and bring it to the rest of the company.
 
Sony can start by saying "Our next TV model will be THE SONY TV. It will pack in all the latest and greatest features and be available in X Y and Z inch models. We will discontinue almost all our other TVs because this is the best TV in the world and the primary one that we will sell." Do something similar to that for all their product lines.

With videogames, which are their core money maker now, they already do that. They have PS2 and PS3. Two models for consoles and PSP and Vita, two models for handhelds. They need to take this philosophy and bring it to the rest of the company.

Problem with the TV market is that the buyers don't really want the best. They want the cheapest. More people care about aesthetics than picture quality anyway.

Pioneer already tried the same strategy with the Kuro line. Best picture quality you could get and only two different model lines. In the end, only the videophiles cared and Pioneer is no longer making TVs. You can't use the videogames business model with TVs. The businesses are just too different.
 

Combichristoffersen

Combovers don't work when there is no hair
Yes, because everybody remembers the extremely high quality games made by old Sega back in the day...

Afterburner, Out Run, Streets of Rage, Sonic, the Disney games, Shinobi and Golden Axe demands an explanation for this bullshit.
I still think Sony has a better library than Sega though.
 
PS4 doesn't have to be some crazy out of this world shit. I don't know why people think SCE is in some do or die situation with the next console. They lost a lot of money with the ps3 but they're well positioned now moving forward. They just need to focus on delivering a solid product. Looking at their approach to the Vita, I think they will.

I don't see how they're well-positioned in any way, relative to their direct competition, anyway. If they don't grow their market performance over the current system, they cannot compete with their rivals going forward since this thing is all about sustaining a self-reinforcing platform market, making the case for a dedicated game console in the current environment and that means a strong platform in the minds of consumers. MS is riding at its height while Ninty still commands the majority, overall. Wherever they are, MS and Ninty are either in front of or behind them, but not far while both possess vastly deeper pockets than Sony to wage war with their console. Neither rival have the downward trending that Sony corp suffers from, as Sony's hardware business is undoubtedly a massive vulnerability to the whole corporation just as Vita's shaky launch looks to drain more resources in trying to establish it than it can hope to justify in sales. I don't think Sony can successfully go head-to-head with MS next-gen, just primarily down to so many things dragging down the entire operation, but I do think they could come in with a new angle of attack and make themselves the new hotness the way they saw their opening with PS1.
 
Problem with the TV market is that the buyers don't really want the best. They want the cheapest. More people care about aesthetics than picture quality anyway.

Pioneer already tried the same strategy with the Kuro line. Best picture quality you could get and only two different model lines. In the end, only the videophiles cared and Pioneer is no longer making TVs.

Apple will probably be trying this strategy with their TV so we'll see how it goes when they try. Though with them it has all the added capabilities like apps and internet connectivity, etc. But I think with the right marketing Sony could slim down their TV line to a very few number of models, focus on quality in the different price categories, market them well and be successful.
 

Canova

Banned
They should abandon everything else and keep:

- Sony Pictures (Columbia, Tristar, Screen Gems, Sony Classic, etc) They should've bought Marvel Entertainment and MGM a few years back, when they still had money
- Sony Phones with Android
- Gaming Division (Playstation and its first party studios)

THAT'S IT! That's all they really need pretty much, if Apple can get that big with only iPod, iPhone, and iPad, there's no reason Sony can't turn it around and more with only those divisions
 

Combichristoffersen

Combovers don't work when there is no hair
They should abandon everything else and keep:

- Sony Pictures (Columbia, Tristar, Screen Gems, Sony Classic, etc) They should've bought Marvel Entertainment and MGM a few years back, when they still had money
- Sony Phones with Android
- Gaming Division (Playstation and its first party studios)

THAT'S IT! That's all they really need pretty much, if Apple can get that big with only iPod, iPhone, and iPad, there's no reason Sony can't turn it around and more with only those divisions

They should keep the camera division too, since it's profitable for them AFAIK.

Edit: And obviously their insurance business
 

jmdajr

Member
They should abandon everything else and keep:

- Sony Pictures (Columbia, Tristar, Screen Gems, Sony Classic, etc) They should've bought Marvel Entertainment and MGM a few years back, when they still had money
- Sony Phones with Android
- Gaming Division (Playstation and its first party studios)

THAT'S IT! That's all they really need pretty much, if Apple can get that big with only iPod, iPhone, and iPad, there's no reason Sony can't turn it around and more with only those divisions

They do a lot of stuff outside the consumer division but yes it's time for some tough choices.
 

Canova

Banned
They should keep the camera division too, since it's profitable for them AFAIK.

I think they should abandon camera too. I know it's profitable, but the profit margin is miniscule. It's to really really really really focus, no more of these half-asses efforts

one of their divisions that can arguable is the music division though. I imagine that's a cash cow with low operating cost , so they may want to keep that too
 

deadlast

Member
It sucks for Sony, but is great for the playstation division.
If Sony is smart, they will do some major restructuring of their failing divisions and pump more money into their playstation division.
 
Even when Sony is down, they're still the best company for gaming, that's just show how craptacular the other 2 companies are. Even near the end of this generation, the only exclusives announced are for PS3. Imagine when they start to really focus on gaming

Someone obviously has stayed very... very far away from XBLA this year I see. There are so many exclusives right now on the 360 I can't even keep up and my backlog is getting silly and it's not stopping.

I think that he is talking about his opinion about the games/platform, not about sales.

Opinions don't help save companies in financial troubles, sales do.
 
I don't see how they're well-positioned in any way, relative to their direct competition, anyway. If they don't grow their market performance over the current system, they cannot compete with their rivals going forward since this thing is all about sustaining a self-reinforcing platform market, making the case for a dedicated game console in the current environment and that means a strong platform in the minds of consumers. MS is riding at its height while Ninty still commands the majority, overall. Wherever they are, MS and Ninty are either in front of or behind them, but not far while both possess vastly deeper pockets than Sony to wage war with their console. Neither rival have the downward trending that Sony corp suffers from, as Sony's hardware business is undoubtedly a massive vulnerability to the whole corporation just as Vita's shaky launch looks to drain more resources in trying to establish it than it can hope to justify in sales. I don't think Sony can successfully go head-to-head with MS next-gen, just primarily down to so many things dragging down the entire operation, but I do think they could come in with a new angle of attack and make themselves the new hotness the way they saw their opening with PS1.

They've been selling more consoles than anyone else for a while now. So there's one reason. They have all the third party support like MS and unlike Nintendo, so there's another. They built up their own network in PSN this gen that will help them going forward. And Vita proves they won't build money bleeding hardware anymore, which is where most of the losses came from this gen. Next gen is really theirs to lose, they'd have to do something truly dumb to be forced to exit the console business.
 

jet1911

Member
They should abandon everything else and keep:

- Sony Pictures (Columbia, Tristar, Screen Gems, Sony Classic, etc) They should've bought Marvel Entertainment and MGM a few years back, when they still had money
- Sony Phones with Android
- Gaming Division (Playstation and its first party studios)

THAT'S IT! That's all they really need pretty much, if Apple can get that big with only iPod, iPhone, and iPad, there's no reason Sony can't turn it around and more with only those divisions

Sony Music?
 
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