How Sony lost its way

Despite its iconic brand, Sony Corp. remains out of step with the rest of the global technology world and its talent for crowd-pleasing innovation has largely evaporated.

A hacking scandal in April that exposed more than 100 million accounts on its online gaming network to possible data theft not only hurt its image but threatens an online strategy meant to unite a disparate corporation and could upset a carefully crafted succession plan for when chief executive Howard Stringer steps down.

[rabidpancakeburglar]

Stopped reading after, "A hacking scandal in April that exposed more than 100 million accounts on its online gaming network" as they clearly have no clue about it. How do they get over a 100 million from the actual figure of 77 million?

[Nitrowolf2]

The added the other accounts from Sony Entertainment Online
77 Million was PSN accounts, idk how many were from other games (Subscription, Quiricty)

[Max_Dissatisfaction]

I dunno why you have disagrees, what you said is 100% true. It was 24 million SOE accounts

[tehpees3]

its just another article twisting what is said to get hits. how many is this now?

[Istanbull]

Its may 25th, 10 days after we're back online and we still getting some leftovers of these corrupted journalists who were late to the Sony-bashing party.

[Joni-Ice]

WAIT A MINUTE....Sony lost their way? Since when? I thought the world didn't end Sat.

[IPUMPMYGUN]

How many times is loner and uneducated journalists going to keep this up? I know you pressed the disagree button, Loner lol.

[DaReapa]

While in submission, this article had several reports (over 10 I know). For the life of me, I have no idea how this got through. Goes to show you about the moderation on this site - or lack thereof.

[krauley]

Gaming journalism is pure garbage just as is most news stations on tv. All news stories/articles look to get a negitive slant out of any information.And imo it wont change because that negitivity is what draws peoples attention over anything positive.

As a side thought, I would like to see this site change the way you disagree to someone by making them have to sign in to click that disagree and then have a link to who did disagree.

[GSpartan777]

Look who uploaded the article. It should say enough.

[metsgaming]

this article shows the failure of the mods. Either they missed it or they purposely let it through. Neither is a good place to be. It was pending for a long time too i doubt they missed it. They still have chance they can still pull it.

[kneon]

I don't see any reason why it should have been rejected. There are far far worse articles approved every day.

Most of the issues discussed are real, though they are also mostly out of date. It used to be nearly impossible for different Sony divisions to work together. That's not at all unusual in a company of that size. But that is no longer the case at Sony, things have improved a lot.

Also I know that they have hired some brilliant engineers lately, the PS4 is going to be awesome.

[DaReapa]

@ metsb
You're right. And what's worse than that, it sat for as long as it did with about 11 or 12 negative reports (maybe more) versus about 4 or so approvals - and STILL made it through. I too was starting to believe that it was let through purposely. The flamebait nonsense throughout this entire site is sickening.

[Apone]

anyways... useless article.

[BLACKBOIJONES]

Booooooring....Give me someting new.

[kikizoo]

"ottawacitizen"

just lol it.

[blackmagic]

Ottawa is the capital city of Canada and the Ottawa Citizen is the biggest news publication out of Ottawa.

[Bell Boy]

didn't even bother reading once I noticed Loner submitted yet another of his famous Sony knocking articles

[Nes_Daze]

So in a nutshell, poor management led to Sony losing their way? Exactly how are they losing their way? They offer amazing gaming products. Yeah they're not on top, they messed up at first but I'm pretty sure they have learned from their ways. So they don't completely dominate the mp3 market, or the gaming industry,so what? that's competition, and it will fluctuate and in the end consumers will be the ones rewarded. I don't see anybody poking fingers at other companies for their mistakes.

[Max_Dissatisfaction]

They used to be the market leader in tv makers, they are now number 4 or 5, they used to be the number one portable music player maker (walkman) and now they don't even register. They used to be the number 1 video game console maker in terms of marketshare, this is no longer the case.
They have reported loss after loss each fiscal year since 2008(?).
I'd say they maybe just kinda lost their way.

[Nes_Daze]

Like I said. it's competition, they've lost their way but I wouldn't make an article for every company that loses their way, holy crap we would have loads of them. I think they are learning from their mistakes, as for the gaming industry, they miscalculated and underestimated casual gaming. But hell, at least they didn't bend over to shovelware.

[-Alpha]

Yeah it's competition, and they used to be the top dogs. Now they aren't. That's just the point of the article.

I don't get why people are making a big deal out of this as if it's wrong to do a piece comparing Sony yesterday to Sony today

[Soldierone]

-How many other companies have abandoned the MP3 market? Even MS themselves are struggling hardcore with the Zune according to sales numbers.

-Sony is right there with Samsung in terms of quality. LG and vizio and other cheap brands will obviously sell more than the quality brands because they are cheaper.

-Introducing Blu-ray, 3D and other technology and spending money to get it into other companies hands and mainstream market isn't cheap.

[baker_boi]

They didn't "lose their way". Sony was doing good in walkmans until Apple made the iPod.

Now how are they supposed to undo the iPod? there is no cure for consumer choice.

They were doing good in TV's until other companies started makin just as good ones but for a lower price.

They could probably be more competitive in pricing but, that wont do much in the long run because most families aren't buying more than maybe one or two tvs.

Again they lost to consumer choice.

Now as Far as console Market Share, only two companies have ever had the Majority, Nintendo and of course, Sony.

They were only number 1 during the PS2 era when everybody and their granny had a PS2/DVD player.

With the PS1 I guess you could say they had a pretty big share towards its ending years.

But now a Nintendo console has it again. And one could argu their current standing in console "Market Share" is the most irrelevant figure to date. Do you know why?

The Wii console doesn't act as a pillar to support the industry. And the same goes for the PSP. Even though it has a slighty large amount of consumer units it doesn't make much of an impact in the industry as a whole.

If your product cant sell product, what use is it?

I'm gettin long winded, but I think you get the point. The number of hardware units only matters when you are continuing the make a profit just off of having that device in people's homes.

Not just dumping it off on a consumer and it fading forever. The Wii has double the share of the PS3 and 360, yet the PS3 and 360 are the pillars holding up the industry.

Sort of changes the definition of what that number means on "Market Share".

[-Alpha]

@Soldier

I really don't see why people are intent on bringing other companies like MS into an article that simply outlined Sony's position in the market.

All these points on Sony doing 3D, etc. isn't the point of the article, nor does it disprove the simple fact that Sony has changed from the top company to slipping a few spots.

It's not necessarily a negative article either-- just one that describes Sony's history. I'm pretty sure that it's agreeable that Sony has lost their holding. Does anybody seriously deny that they used to be much more successful as a business and a much bigger leader in the industry?

Am I the only one who enjoyed the article for what it was?

[Soldierone]

@Alpha Because markets have changed. Apple is a computer company that foresaw the imapact of MP3 players and phones. They advertised the hell out of the market and won over a majority of consumers. You are saying Sony is falling out of place because they no longer hold that top position there...Yet companies like MS making top quality MP3 players can't even keep up.

If Sony is falling out of place than their technology wouldn't be up to par. Yet it is, and in most areas its better. A leading company for any industry is a company that can innovate and bring new ideas for consumers.

The only logic in this entire argument is "Sony can't win with sales" Who friggin cares? Sony is doing fine, just because they don't brainwash us with advertising and win in sales doesn't mean they are failing. If Sony was jumping ship on PlayStation, MP3 players, Computers, TV's, and shutting down several division then maybe youd have a case but they are not.

Apple is considered a leader yet its computer sales have yet to match Microsoft's, Android has a bigger market share over the entire phone market, yet Iphone is considered the leader. According to this article it shouldn't be that way....

[-Alpha]

What argument on sales? And why does nobody care?

It's a tech article regarding the corporation. I've yet to see anybody demonstrate how their primary outlining is wrong-- that Sony have fallen from what they used to be.

And no, powerful tech =/= Company success. That assumes many things about the companies profits, consumer relations, etc.

I am just agreeing with the general notion that Sony used to hold the top position and no longer does. Isn't this a fact? That's all the article is outlining-- your reason that Apple marketed and won over consumers just outlines the point that Sony lost its dominance in that market-- which is exactly what the article is trying to inform readers.

I don't get why people are always so defensive and get off topic with about how well Sony is doing now with 3D or Blu Ray-- that is not the point of the article.

I linked it below, but I'll do it here too: "MS is a dying consumer brand" manages to get the exact opposite reaction on N4G http://n4g.com/news/634707/...

It's pretty annoying because it seems to be that people can openly criticize MS without hesitation, yet claim that Sony is being attacked. Seems more like to me that people just take Sony criticism more to mind and heart. It's a big case of selective memory-- people don't care when MS gets criticized, but when it's Sony, suddenly they are solely targeted and defended in a manner that gets off topic

[baker_boi]

@ Alpha-

I already did so.

The article is implying that Sony "Lost their way".

The phrase itself implies wrong doing on the individual's(SONY's part) without looking at the rest of the market and explaining that aspect.

Once again, it's hard to fight against consumer choice. What tactic do you use to gain consumers when they just choose a comparable item over your product?

And the article seems a bit redudant doesn't it?

Why do we need to now SONY isn't selling as many MP3 players and TV's as they used to? If it actually had a significant impact on the company that would be one thing, but it doesn't.

people are still buying the Sony Products just at a much slower rate than 10 years ago.

You forget their are cheaper alternatives and the Economy is shambles, people are trying to save money.

And here's an article on a Video Game website telling me Sony is selling a few hundred thousand TVs instead of a million(just hypothetically).

We can augment that figure by shoving the PSP in their if you like, which is an all around media-player. And all of a sudden SONY has sold a lot of damn MP3 players and Tiny TV's...But who cares?

And as far as those Microsoft articles go, I don't read them. I didn't even click on the link this time.

I don't worry about how many Windows OS copies MS isn't selling, because they still selling even if not at number one(we know what it is though). The fact that Microsoft isn't number one in the MP3 player market also does not matter because they are still selling Zunes.

The only time the sales of the individual products these companies make matters, is when that product is anchor of the company and it's making incredible profit or is creating incredible losses.

If SONY not selling TV's started to affect the company as a whole, then yes, right me an article telling me they are the number TV makers anymore.

This could effect the Playstation Brand. THAT concerns me.

Back when I was growing up we didn't have a SINGLE SONY product in our home, do you know why?

They were too expensive! I remember when my brother was in Highschool and he got a sony walkman. He took it everywhere with him until he dropped it and broke it. That's 50 bucks down the drain.

lower-Middle to Lower class working families can't be apart of buying luxury products like Flat Screen TVs and PS3's iPhones, and iPod touch, etc. etc.

Though, some of these products are made available through other means at a cheaper price(not bootlegging) these two classes will general not be apart of SONY's main consumer group.

And guess what? America has had a BOOM of lower-Middle to Lower class people in the last 20 years.

I in fact see more of not only SONY's more luxurious items falling on the sales charts, but every other electronics company that sales at premium prices.

You can't fight consumer choice with a corporation. Unless you brainwashing or are the only choice, when you get over picked you just do.

It doesn't mean you, "Lost your way". It means you lost your sales.

If you have a lucrative business and you Crack smoke it to hell, you "Lost your way." When lose it due to debt or a market stagnate product, you lost your sales.

Messing up your business vs Consumer choice. This article implies SONY somehow shot themselves in the foot in someway.

I got one more bubble if you need a better explanation Alpha...

[-Alpha]

@Gloomy

"I don't see anybody poking fingers at other companies for their mistakes."

Well are you looking? Others may very well be poking fingers at other companies-- only reason this is on N4G is because Sony is gaming-related, so it's not like you will see articles on Apple, Toyata, etc. on this website. It's not just Sony, it's just where you are reading your media.

Point of the article was to outline how the company as a whole used to be a lot bigger. I don't know if it belongs on N4G, but it's a good informative read so I don't see why people are bashing it

[barb_wire]

Well IMO.. Sony do more than consoles and games - you know that right?, So, why no Microsoft articles?.. xbox division still loses money - sure they the lead in NA for consoles but worldwide they don't.

Windows 7 phones are a disaster sales wise.. as was the Kin, if it wasn't for Kinect add-on and MS monopoly on OS on new PC's.. I'd hate to think where MS would be. But, we don't see those types of articles like that about MS here on n4g - same goes for Nintendo.. yet, Sony gets bashed all the time.

[-Alpha]

@Barb

Curious sidenote: Do you have a link showing MS is losing money on the Xbox division? Because I'm pretty certain that they are profiting off of Xbox.

Why would be see MS articles on N4G regarding Windows 7 phones? Or the Kin?

You can google MS-related criticisms and you will find it. Guaranteed. Have you ever looked?

As for MS and N4G Criticism, I just did a simple search and found "MS is a dying consumer brand" It has some resemblance to this article:

http://n4g.com/news/634707/...

Notice the first comment's attitude? Unlike the ones I see on most Sony-related articles, this one criticizes MS, yet everybody is able to have a critical discussion so openly.

Why is it different with Sony?

[news4geeks]

-alpha, you are trying to rationalise with the irrational. They simply cannot comprehend. Deluded by brand favouritism and loyalties. You'll get the disagrees but no successful counter-argument.

[Boon Tarkas]

"I don't see anybody poking fingers at other companies for their mistakes."

Try reading Newsweek, or Forbes or the Journal.

[SkyCrawler]

Loner's trying too hard again. Srsly dude...Did Sony steal your lolli?

[Otheros00]

Loner, again? I know your trying to make newbs think your neutral when you submitted pro sony articles but the people that have been here long know better. We know you love submitting Sony Is Te Doomz articles and hate Sony for everything, even if it has nothing to do with sony.

[zeal0us]

what does this guy got against sony lol.

[Workshyskiver]

Things are going to get ugly here....

[Raven_Nomad]

Nice read. Too bad it will fall on deaf ears here. Sony can do no wrong according to N4G.

[thebudgetgamer]

that's clearly not the case since you're here, and many others like you that think sony can do no right.

[fei-hung]

no one said Sony cant do any wrong, but there is a difference in doing wrong and losing your way, unless in some weird alternative reality where you are, those 2 mean the same.

I suppose the world has lost its way since it spends more money on war then it does on helping fight poverty and child abuse.

I suppose Activision has lost its way for churning out the same crap year after year.

I suppose Nintendo have lost their way for selling their soul to soccer moms and OAP's.

I suppose Ms have lost their way since Apple has made better software than them for the last few years. Google demolishes them on the search engine turf, Blackberry and other messaging systems have made msn the last choice. MSN chatrooms have gone houdini and Facebook has raked in billions and the video game market which should have been theirs this gen with a year to year and half headstart was lost to Nintendo.

I suupose everyone has lost their way.

[MrDead]

You can also say MS lost its way on the console market as its direct competitor the PS3 has sold more then the xbox 360 since its release. This is how the gap between them has shrunk, if the 360 had sold more the gap would have increased.

[digger18]

It's funny how its only people that say "nice read" to articles like these are a fanboy of another make of console.

Do you say "nice read" to well written articles saying bad things about Microsoft?

[Raven_Nomad]

Actually I do say nice read to any well written article. I too have written a article about how Sony has lost it's way, far before the PSN debacle.

The fact is you don't go from dominating two straight generations to last place by doing everything right. I certainly don't hate Sony, I own a PS3, I just think they should have put a focus on the online aspect above all else.

A better price point at the start and not taking away so many things that were promised would also have been nice.

[Biggest]

A: No. You don't say "Nice read" or anything close to that in an anti-MS comment section. You revert to calling people fanboy.

B: There is no fact in what you say. You attempted to make it fact by adding "doing everything right" to the equation. If you look at it from a rational point of view you might be forced to admit that Sony does some things very well. You refuse to do that 100% of the time.

C: The Playstation brand is about gaming. Online services are an added bonus. Playstation was around before online gaming hit its stride on the console front. If you love online services, get a PC and be happy.

D: You can not take things away if they were never given. Sony never promised you anything. Ken Kutaragi said the PS3 SHOULD be able to do 120fps. That's pretty much the only thing he claimed that hasn't completely happened.

Stop living in the lies of the past, Raven_Nomad. Embrace your hate for Sony before it consumes you.

[Soldierone]

"Despite its iconic brand, Sony Corp. remains out of step with the rest of the global technology world and its talent for crowd-pleasing innovation has largely evaporated."

Are you stuck in the MP3 market or something? You do realize ALL the other products they make?

And I DARE you to write this same article the day after E3 with any standing ground at all. For a flamebaited article i give you props, other than that...do some research.

[Jack-H]

Take a chill pill, bro.

[TheGamingArt]

How the media lost it's way.. see what I did there. These articles are a joke.

[X-Zone]

Sony has never lost it's way, the get the gaming industry the way Microsoft never will.

[banjadude]

Wow, I didn't know my local newspaper wrote this! Shame on them though.

[blackburn10]

I think lost their way is an exaggeration. Fell down, had some bad times, had a few setbacks but lost their way? When Sega and Nintendo fell down because of Sony would you say they 'lost their way'? Companies rise, trip,fall, pick themselves up and go through hard times.

Not sure if they have 'lost their way' because with what Nintendo has become as opposed to what they used to stand for I could easily say Nintendo has lost it's way catering to 'casuals' and nostalgia hounds instead of being the top IP supports with new and fresh ideas. Sony is still recognized as a household name around the world but people act as if their name is dirt. The PSP and PS2 still sell to this day on their name alone but do you see anyone playing a Gamecube or Xbox? No. But as I see it is another Sony hate article dug up by Loner from who knows where. Why is this troll allowed to post articles?

[fei-hung]

true, and its something a friend of mine said who works at ernst and young.

he said Sony is built on a flat foundation. it has multiple arms doing multiple things and although they are not all doing great individually, they are all doing okay. if one falls, the other can pick it up and there is a want for every arm it has. Also, just because their TV's are not selling or their fones are not as popular at apple, doesn't mean they are not supplying parts to other manufacturers who are more successful.

MS on the other hand have a lot more to lose as their company is built on an upside down house of cards. Everything relies on its OS to sell. If that division falls, then every other division will collapse under it. The OS it keeping MS afloat.

The only way Sony can lose their way is the day they stop innovating and creating tech for tomorrow's world. More often than we know, we are using other brand products which have Sony components in there and vice versa sony uses other corp components.

edited last sentence for clarification.

[Biggest]

Great point about Sony's branches. The Nintendo point is even more important. They look amazing from a sales standpoint right now. Granted, the games in large part are TERRIBLE. Even when finding their way, Nintendo has lost their way. People seem to forget that before the Wii there was the DS and a bunch of barely mentionable products. Their home consoles were largely ignored after the SNES. I'm sure there were articles about this when the Wii was close to release. Nintendo's life before the Wii is an example of losing the way. Sony's current console and handheld are FAR more important than the N64, Gamecube, and Xbox combined. Hell, the PS3 alone almost beats the three in total sales (and it most certainly will sell much more). Sony didn't lose their way in the gaming world. The faux media members posing as journalists are looking at an upside-down map. That is the real problem.

[Alos88]

This guy is biased against Sony, read some of the other articles on his site, very, very few have anything nice to say about them.

[Dart89]

For christ sake everyday Loner makes some stupid article about Sony just look at his submissions can the mods plz ban him??

[MaximusPrime]

Loner probably sit back and laughed at us. He just want to bring the old days of flame wars back on N4G. (remember BR and HDDVD wars)

[finnhima]

Its hilarious to see how far someone will dig to try and make this website seem like 2006-2007 all over again. It's not just Loner alone, its like a handful of fools digging for negative articles no matter how exaggerating and ridiculous they seem.

[Peaceful_Jelly]

This guy is clearly overreacting. >_>

[Troll-without-Bridge]

If consumers like to buy cheap korean and chinese products good for them. I rather stick with quality.

[green]

"Back in 2000, Sony’s market value had been more than seven times Apple’s. Today, Sony’s market value is only one eleventh of Apple’s, and its share price is little changed from 1995 — the year it launched the digital camcorder.
"

wow!!

[Boon Tarkas]

Easy there Green. The knifes are out. Being objective about Sony on this site is about as popular as kicking a pug dog.

[Biggest]

The statement he quoted says that Sony was large in 1995-2000 and has been consistent. Apple was small and grew into a larger company. There is a ceiling on every company. There is not one company in the history of trading that has grown indefinitely. Microsoft had their huge jump near 2000 and haven't been that high since. Apple is big because of the iPod and iPad "innovations" alone. Once people get tired of new advertising of old products, they will also come back down to earth. Sony was riding high in early 2000 (much higher than MS has EVER been) and was consistently good all the way until 2009. All companies have highs and lows. The only negative in green's comment is the intention.

[girlwithturn]

I just play one of the best games ever made in dev history Uncharted 2. I don't even know what was written in the article.

[Boon Tarkas]

Know what else is uncharted too? Your grammar skills.

[finnhima]

Who the fuck critiques grammar in a damned gaming website? His sentence was clear enough to read, and you simply decided to clock his statement in an ignorant way simply because he said something positive about a ps3 title and ignored the heavily exaggerated article.

I hate it when fools stoop that low to insult sentence structure. Get a life.

[ElementX]

Zing!

[boss_killa]

Sony's had some miss steps but they're still alive and kicking. They're still pumping out core game after core game this year and well into the next and beyond.

Besides the PSN hack, Sony's been making some good moves and partnerships lately. I can't wait to see what their partnership with Google brings if anything.

Edit: Imagine if Sony and Google merge! Think of the possibilities.

[midgard227]

lmao funny article, they suck, sony isnt losing its way, all i see are more and more AAA (Absolutely.Awesome.Amazing) exclusives :)

[susanto1228]

The way it used to be

Music dominated by Sony

Cassette players=Sony
Televisions=Sony
Video Game System=Sony Ps1

Now the present....

Music dominated by Apple

Mp3 player=Apple
Televisions=Samsung
Video Game System=Xbox

How the mighty have fallen...

Sony has many many many failed projects look it up
somehow they are one step behind from the competition
always...and they will remain this way until they
change their ways. They have let other companies
come from behind and take lead in technologies that
they were once Number One but no more.

[blackburn10]

@ X4life. That is sad but true. No one seems to care about value anymore only how cheap it is.They will buy any rubbish as long as it is cheaper while there are better alternatives that just cost slightly more.Who cares if it's cheaper if it is just going to be replaced by a new one a year later or breakdown in a few months?

[Bell Boy]

lol video game systems dominated by Xbox...pmsl

Nintendo says hi

[ZBlacktt]

You are so clueless....

Video game

PS2 = #1 best selling all time

PS1 = #2 best selling all time

There still is Sony Music, Sony Picture's and Sony Boardcast ( pro sporting events ).

There still is Sony:

TV's
Radio's
Stereo's
Computer and Laptops, etc,etc,etc,etc...

Video game System = XBox???? WTF is that! The XBox has NOTHING on the PS3. Look who takes the Game of the Year every time ( until RDR which is a multiplatform game )

Look up most talked about AAA exclusives.

The XBox was the biggest fail rate console in gaming history = fact.

[Killzone3___]

it didn't change anything to me , you people are too sensitive ... it's stupid that people changed to xbox360 and compared the hack to what you call {Red ring of death }

[TBONEJF]

SONY DIDN'T LOST THEIR WAY YOU IDIOT. It was GEOHOTZ and his followers that started it all. ALl because he jail break his PS3 which WAS ILLEGAL and he know that but didn't listen now he can't buy any of their products anymore to jail break it includes PSP. I blame HIM FOR THE PSN SHUT DOWN TIME and who ever HACKED OUR FREE PSN and that pisses me off for 3 weeks for not being able to play online. SO DON'T SAY "SONY lost it WAY". It was GEOHOTZ AND HIS DUMB ASS FOLLOWERS.

[SteveSmith]

The "Sony is doomed" is always a popular type of article on N4G.

[XabiDaChosenOne]

*Yawn, keep trying.

[ZBlacktt]

Another really dumb approved story by Xbox player's. One that is just so dumb.