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Old 01-30-2014, 09:01 AM   #2006
Kjesse
Retired
 
Join Date: Oct 2003
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The reason Sony had become synonymous with quality was because of their TV's when they had the patent on their trinitron technology. The trinitron TV's gave the best looking picture available for a home television. They were higher priced and became known for their quality, and consumer perception became that their home audio equipment was also superior (even though it really wasn't) and they could sell it for higher prices. That run lasted for about 30 years.

Now their TV business is hurting because they no longer have the competitive advantage. Their audio business also seems to have struggled.

They're damn lucky they caught lightning in a bottle again, this time with the Playstation 1, 2, 3 and 4. Coincidentally (or not) the PS 1 came out about the time the trinitron patent was expiring.

I think their tv/home audio business will continue to drop unless they come up with something spectacular. I also think they're way behind microsoft in terms of positioning the PS4 as a media machine. They have the stronger gaming system this time around, and a better price point, but projecting to the future they depend on the PS4 to stay alive, and they need to be stronger. I think the VAIO business will die, the computers they build just aren't worth the price premium, and some VAIO's I've used have been junk.

The bold move would be to separate the tv/home audio division into a new company, or spin out the PS4 and VAIO business allowing each group to focus on what they do best. Spinning out the PS4 would give that company more cash and leverage moving forward and not hamper future development by forcing Sony to divert PS4 profits to prop up the rest of Sony's finances.
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