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Sony Reshuffles Company Again To Offer More Compelling Products

by , 2:40 PM EST, January 31st, 2005

In another move to fend off competition from Apple and others, Sony today announced the creation of a third electronics division that will handle digital and video cameras, car stereos, and navigation equipment, The Wall Street Journal is reporting.

The move will reduce the burden on Sony's PC division, responsible for computers and PC-connected Walkman products, like the minidisk and flash-based music players. A third division, recently launched and dubbed Connect, will handle hard drive-based Walkman products.

Sony says that splitting up the business will allow each part to develop its product faster. Sony reported a 48% decline in audio operating income during the December quarter and is hoping to reverse that downward trend. A week ago, Sony issued a profit warning for the current quarter.

Observer Comments

Show: Subjects Only | Full Comments
Close Name:Tiger Posts: 1016 Joined: 17 Jun 2003
Subject: a veritable shell game

Sony, in an attempt to confuse everyone else in addition to their employees, has decided to create yet another division and hmmm....lose market share.

Pretty soon, their stock will be down with Gateway's...

Close Name:Mace Posts: 9604 Joined: 07 Aug 2003
Subject:

What's Sony thinking? Spin-off that newly created Division later? My suggestion for Sony is to team up with Apple in their digital music effort. Be the first one to produce an alternative player that can play AAC/FairPlay music.

Close Name:Guest
Subject: Sony = Greedy

They want to own the whole pie, rather than share the pie. You're right - they should team up with Apple. Steve has made no secret of his admiration and affection for Sony products. I thought the inclusion of a Sony VP (President? Whatever bigwig it was) at MacWorld's Keynote was a hint or testing fo the waters, but it looks like Sony's just not interested.

Perhaps they see it as their right to dominate personal audio - especially personal players - but they're losing, and in danger of permanently losing this market. After years of crap products, lowered quality and just plain bone-headed moves, they are in danger of losing their "major player" status.

Just be play nice with Steve, guys!

Close Name:Guest
Subject:

How the mighty have fallen.

A once great maker of consumer eletronics is now constantly reshuffling their divisions while competitors' products have caught and surpassed them for quality and innovation.

They must believe their own PR, written for a world where Sony is still King.

Especially annoying is the coy attitude of the folks in the Playstation division -- oh, you MIGHT get the PSP -- maybe in March, maybe not. Just don't expect any real information from us, keep guessing. We'll let you know one way or the other eventually.

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