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Sony Dumps PCs, Splits TV Op, Cuts 5,000 Jobs
2/6/2014

CES 2014's keynote address by Kazuo Hirai, President and CEO, Sony Corp.
CES 2014's keynote address by Kazuo Hirai, President and CEO, Sony Corp.

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prabhakar_deosthali
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CEO
Re:
prabhakar_deosthali   2/7/2014 8:15:34 AM
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Seems like Sony is following the way IBM exited from all kind of PC and server hardware business.

But Sony has to decide fast which way it wants to reinvent itself . Sony has been known as a consumer electronics company - TV, cameras, Laptops and the smartphones.

Not sure how it will cope with the new wave products like wearable devices and IoT stuff.
 

alex_m1
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CEO
virtual reality
alex_m1   2/7/2014 6:37:56 AM
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It's too early to exit CE. Virtual reality could be a very big industry.There a lot of excitment from gamers and others.

 

And Sony is building a VR headset.Reviews say it's far better than occulus rift, the other commercial competitior, and it comapres to Valve which is has the best research prototype(and doesn't intent to market it). And sony could use it position in gaming to grab a big share.

But since the PS4 is relatively underpowered for virtual reality(it's only powerfull as a mid range pc) , that means sony will have to face some difficult strategic choices.Will it sacrifice PS4 for the next market ? . It would be interesting to see how this plays.


BTW 150,000 is the number of employees accross sony electronics,entertainments and finance. How many are there in electronics ?

junko.yoshida
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Re: Wow TVs too
junko.yoshida   2/7/2014 5:18:14 AM
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@resistion, that's a good question. Does Sony have the right sensing technology? I don't know. Well, they can always buy what hey need, too. But you are asking a better question. Do they have "the right resources" ( to acquire what they need, identify apps, find partners and customers, and pull the team together)? It remains to be seen.

junko.yoshida
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Blogger
Re: Not like this hasn't happened before
junko.yoshida   2/7/2014 5:11:45 AM
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@Bert, you made an excellent point here. Many of these erstwhile CE brands in the U.S. you mentioned here either disappeared or re-invented themselves. So, why wouldn't Sony be able to pull that off?

resistion
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CEO
Wow TVs too
resistion   2/7/2014 4:24:51 AM
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I also bought Sony TV before too. Seems may be more than just PC demand problem now.

Sensing sounds promising. But do they have the right resources for it.

Bert22306
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CEO
Not like this hasn't happened before
Bert22306   2/6/2014 8:32:57 PM
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US CE companies like GE, Magnavox, Admiral, RCA, Westinghouse, Stromberg Carlson, Fisher, and a whole host of others, have had to get out of the CE business and either reinvent themselves or disappear entirely. Sony is dealing with that same problem.

My thinking was that Sony could get involved in this IoT field and in smart cars. Both require new sensor types, so their interest in sensors could make a good fit. I agree that they don't need to keep making boxes. For example, Qualcomm, some years ago, stopped making boxes and started building only chipsets. So even this type of reinvention of a name brand is not novel.

Yes, it's a huge change for Sony, but hardly unprecedented. Why should Sony be immune to this, might be a better question. The CE business is extremely competitive. Sony's products were always priced higher than the competition, so it's not surprising that competing against the newest low bidders, China/Taiwan and Korea, was going to be difficult.

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