Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

Sony's comeback: Can copycat products bring it back to the top?

By | March 4, 2010, 12:09pm PST

Summary: Sony reportedly is on the verge of some bold comeback moves - but will it be too little, too late?

Sony may make some fun commercials featuring Peyton Manning and Justin Timberlake. But when it comes to selling gadgets to today’s tech-savvy consumer, Sony has a long way to go before it can catch up to rivals such as Apple.

Sources tell the Wall Street Journal that Sony is working on a new lineup of handheld products, specifically a gaming smartphone and a portable device that brings together netbook, e-reader and PlayStation Portable functionality. Clearly, that’s an attempt to go after Apple, which has incorporated - and played-up - handheld gaming in the iPod Touch (and, indirectly, the iPhone, too), as well as the yet-to-be-released iPad tablet device.

To bring it all together, Sony is expected to tie these devices to its online media platform, which is expected to launch later this month. The WSJ report says that the new devices are slated for launch in 2010. But I’m not holding my breath in anticipation.

First, a Sony spokesperson declined comment to the Journal - no surprise there. Second, I would think that if a new product line is coming in 2010, then Sony would have been talking about it already. It’s March already. Even if it’s slated for release in time for the holiday season, Sony should be talking up its plans to generate some buzz around them. It’s not like the company has the cult-like blogosphere following that Apple has to generate buzz around forthcoming announcements. Sony needs to talk about them publicly to get the word out.

It’s sad to say but it’s almost as if Sony no longer “gets it.” Here’s an excerpt from the WSJ story that had me shaking my head:

Sony’s media platform, temporarily named Sony Online Service, will offer many of the same movies, television shows and music already available on iTunes. But the company aims to differentiate its service by allowing a wide range of devices to tap into its catalog of games, mainly older titles released for the original PlayStation console.

Yeah, because that’s what the gamers of today want: games from a three-generations-ago console device. Nothing like spinning things forward, huh?

The smartphone could prove interesting - but Sony would have to rise above the noise at a time when consumers have a growing number of options in smartphones and the competitive landscape is heating up.

There’s no question that Sony is capable of putting out quality products. In fact, I used to be a “Sony-only” consumer - but those days are gone. Sony lost me years ago and really didn’t do anything enticing enough to lure me back. Even my pre-teen son prefers to play handheld games on his iPod Touch instead of his old-school PlayStation Portable and chose an Xbox 360 over a PlayStation3.

The WSJ notes that PSP shipment targets for this year were slashed by one-third and that sales of the PSP Go - the latest version of the device - have been slow, largely because of its hefty $250 price tag.

Sony has enough brand name equity that it could make a comeback - but it will really have to make some bold moves to tie everything together within the online environment. Still, the clock is ticking - and unless Sony starts offering up some details on what it has in the works and starts building some excitement around it, Sony could end up looking like another “me-too” device maker.

That’s too bad, considering Sony was once at the top of the consumer electronics game.

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Sam has been a technology and business blogger for more than 18 years.

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Sam Diaz

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Biography

Sam Diaz

Sam has been a technology and business blogger, reporter and editor at ZDNet, the Washington Post, San Jose Mercury News and Fresno Bee for more than 18 years. He's a member of the National Association of Hispanic Journalists and a graduate of California State University, Fresno.

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RE: Sony's comeback: Can copycat products bring it back to the top?
homeioy33-24353601834914055300140533613878 Updated - 4th Nov
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0 Votes
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I do enjoy Sony products.
tbensen@... 4th Mar 2010
I have always enjoyed Sony products and have
never had any problems with any of their
products. I own a PS3 and I consider one of my
best electronic purchases ever. I would have
thought Sony would have already been competing
in the smart phone market already but alas they
are not.
If they do come out with a smartphone it should
be able to link to the PS3 and able get those
older games downloaded onto the phone or at
least some of the new ones you can get from the
PSN.
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They haven't found a way to make it incompatible with everything else that's out there.

Apple only entered the market when they devised a way to make their smart phone Apple only.

I like Sony engineering but I think that their engineers have a hard time dealing with their marketing. How else can you explain how much they cripple their own products from what they can do to what they actually do.

e.g. PS3 no hypervisor for the video processor in the "Other OS" or completely removing the option from the newer units.
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Also used to be "Sony only"
itpro_z 4th Mar 2010
There was a time when Sony was my preferred brand for consumer electronics. I think I still have one of their early Walkman's around somewhere, and I still have a couple of A/V devices in my stack with their name on it. At this point, however, I do not even consider Sony when making a purchase. In fact, I purposely reject their products across the board.

What happened? Well, the root kit virus on their music CDs did a lot to change my mind. I also saw a decline in quality in their products, combined with an increase in price. Sony used to be high quality at a reasonable price. Now, they are mediocre quality at a high price. The other issue, in my opinion, is their corporate arrogance. Sony seems to believe that they can screw us over and over and we will just keep coming back for more.

Most recently, their attempts to cram Blue Ray down my throat has been a significant turn off. While the BD technology is interesting, their cutthroat marketing and high prices have done nothing to convince me to move in that direction. In fact, I now just download movies rather than buy physical media.
0 Votes
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Up until the late-80s, Sony was synonymous with
quality and innovation. But then they started buying
record labels and movie studios to become a "media
company". All of a sudden, they saw their electronic
products at odds with their media assets. The company
that invented the market for the VCR now also sold the
content that VCRs used to be used to make copies of.
This made them paranoid.

Product lines that used to represent the cutting edge
in technology and usefulness to consumers were all of
a sudden their own enemy. New products were inflicted
and hobbled with unworkable DRM schemes that at best
were a hassle, and at worst rendered them practically
useless. When things did work, it seemed more for the
purpose of delivering Sony content instead of
delivering value to the end consumer as the consumer
saw fit.

The rootkit they placed on their audio CDs probably
represented the peak of their hostility towards their
own consumers. I can't imagine buying any "digital"
products from them since I can't trust that somehow
they've got something in there designed specifically
for their purposes and not mine. This is not what I
pay money for.
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I Concur
rarsa 5th Mar 2010
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Interesting Thoughts
Cardhu 5th Mar 2010
I suggest that Sony's failure with the Betamax illustrates exactly the problems they are displaying now with blu-ray, DRM, and media rootkits - Sony is thinking of what Sony wants, not what their customers want.

The result is a fundamental disconnect between what Sony sells versus what customers want to buy.
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Just substitute M$
Wintel_BSOD 5th Mar 2010
...and you'll get the same result...
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and that distinguishes Microsoft from Sony.
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True, but that's besides the point
still not nice 8th Mar 2010
"Sony is thinking of what Sony wants, not what their customers want.

The result is a fundamental disconnect between what Sony sells versus what customers want to buy."


Just substitute M$ and you'll get the same thing.
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True, But ...
Cardhu 12th Mar 2010
Re: "Just substitute M$ and you'll get the same thing.."

How is that relevant to this topic about Sony's product strategies?
Sony already has a solid ebook reader, though it needs to find a way to get more buzz for it. Right now the iPad has all the buzz but it's far from perfect and it doesn't have any market share yet. Ghere is still time for something better to take the niche that the iPad is aiming for, but it will have to be on the market by midyear.

Sony currently makes what is arguably the best ultraportable laptop on the market (the Z series). If they can bring some of that tech to a more affordable price point they could really have something.

I think there is still time for Sony to become a player in the smartphone market, but they'll have to go with an existing OS (most likely Android) rather than trying to invent yet another one. Perhaps they could use an improved media player as their unique selling proposition; that would fit well with their Walkman heritage.

Sony has some work to do on video. They were one of the dominant camcorder players but that is a shrinking market now that other devices (point-and shoot and DSLR cameras, cell phones) are incorporating video recording. But if they can leverage their video expertise into these new platforms they could make headway.
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Sony Online Service
geoff@... 5th Mar 2010
Anyone else notice on the temporary online service name that if you take the first letter of each word you get S.O.S. Subliminal cry for help there or what? I too was once a big Sony fan particularly for Video, now not so much though I will still consider Sony products it is not first on the list.
I will never trust Sony again since their root-kit problems. They wanted to control what we do with our purchases and probably will try again. They get nothing from me! Except a good dose of bad mouthing. They can dry up and go away as far as I'm concerned.
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RE: Old games
midenginedrift Updated - 5th Mar 2010
Actually, if designed for a handheld and made available for a low price, offering old Playstation 1 titles is a good idea. Right now, on the Playstation Store, some of the best selling games ARE ps1 titles. FF7, of course, did very well when first available. FF8 is doing well now.

They also made it so you could transfer these games to your PSP.

Which makes me wonder if they can come out with another portable product worth owning (since the Go was such a failure and I had no desire to replace my PSP-1000 with it).

I do agree that Sony seems a bit out of touch. Maybe they'll surprise me soon, just like Verizon surprised me by actually following through on it's partnership with Google. shocked
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Sony can burn in hell...
Narg 5th Mar 2010
I'm still not over them FORCING Blu-Ray onto the consumer. That was the last straw.

Now we're stuck with a format that is too expensive for the average consumer, and too flaky to trust.
0 Votes
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the movie industry did. Being that HD-DVD players were completely
outsold in most of the major markets by Blu-Ray players (thanks in
part to the PS3), the movie industry standardized on the format with
the largest installed base.

As far as the equipment being too expensive, it's not expensive when
compared buying an upconverting DVD player and a separate Netflix
STB (Roku HD wired network player is $100, typical HD upconvert DVD
player is $60; Samsung P1600 Blu-Ray player with NetFlix is $150 on
Amazon). I also know that Blu-Ray movies are typically $10 more than
DVD movies, but you don't have to get everything in Blu-Ray if you
don't want to; save it for those movies that you really enjoyed.
0 Votes
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Taking A Closer Look
Cardhu Updated - 5th Mar 2010
Re: "HD-DVD players were completely outsold in most of the major markets by Blu-Ray players."

Please provide your sources.

Regardless, the movie format with the largest installed base remains DVD.

In terms of media sales, DVD outsells Blu-Ray by ratios of 8 to 1 in revenues and 13 to 1 in sales.

http://talkback.zdnet.com/5208-11408-0.html?forumID=1&threadID=74737&messageID=1455630&tag=content;col1

Typical cost analyses comparing blu-ray to DVD overlook a key fact: DVD is the installed base. Most people already have DVD players, both home units and portable units for kids for car and air travel.

So adopting blu-ray for most people means paying a stiff premium to replace capabilities they already have.

Adopting blu-ray for us, for example, would entail replacing at least 2 DVD players and 2 portable players. We would not settle for a $150 Samsung. We would choose a quality player that has good user reviews for performance, ease of use, and reliability. That means a Panasonic or LG player costing at least $250 a unit.

The portable units - always overlooked by blu-ray proponets - are outrageously expensive. These list for over $800 retail with a street price of $550. That is 4 to 8 times the cost of DVD portables.

So for us, the grand total for adopting blu-ray comes to a whopping $1,600 just to keep what we have.

That makes no sense whatsoever. So we are still buying DVDs for our upconverting players. The statistics say that a large majority of the market is responding exactly the same way.
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The problem with Blu-Ray...
nfordzdn Updated - 6th Mar 2010
...is not just the cost, but going from VHS tapes to DVD was a huge jump in picture and sound quality; the DVD media was much less fragile; and movies on DVD quickly got to costing much less than on VHS.

In contrast, BR movie discs usually costs over 50% more than DVDs; picture and sound quality is only a little better on BR than the already very acceptable DVD quality; and the life of the media is the same.

I was an early adopter of BR players, but they are MUCH, MUCH, MUCH slower to start up (30 seconds just for the tray to open), don't play DVD discs burned on my computer, and don't work as well (e.g.: if stopped, most BR discs won't start back up where they stopped). I quit buying BR movie discs a long time ago.
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I Hear That From Others Too
Cardhu 8th Mar 2010
"But ... did we mention the pretty pictures?"

Yeah, I agree with you. No dramatic improvement in picture or sound quality with considerable loss of useful features. That also bears on the public decision whether or not to buy.
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That was clear with the inappropriate response to the Date bug on February 28

http://blog.us.playstation.com/2010/03/latest-info-on-playstation-network-status/

They were very slow providing updates.

Now, it's been 5 and they haven't provided further information. Will this require a firmware update? Is this a ticking bomb?
0 Votes
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Sony makes garbage and doesnt care
Fletchguy 5th Mar 2010
Sony can curl up and die. I have never been a big sony fan but tried to give them a benefit of the doubt try and bought a vaio..wosre computer I have ever owned period....and they now give you 15 minutes of chat support then charge $65. It takes them about 16 minutes to ask your name and telphonenumber then times up. They are tasught to not reply fast and to avoid your question during the 15 minutes.. they make a garbage console like the ps3 and then ruin thier good psp with the psp go piece of crap..sony is done except for media..
Sony seems focused on what Sony thinks will generate Sony revenue. The results are products and business decisions that customers don't want.

For me, a Sony smartphone that plays PS1 games is utterly irrelevant. I want a smartphone for my next upgrade, yes. But I want one that will simply replace my PDA and cellphone with a single handheld device.
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Sony took MS idea of continued ownership
hantoyo1@... 5th Mar 2010
of it's product line to the hardware arena. Along with that, they created mostly unneeded software to add to an otherwise decent computer.
Now they seem to want to continue the idea of corporate owned hardware that has been fully purchased by the end-user by deciding ( for their own reasons ) not to allow customer access to BIOS settings that would allow full implementation of all hardware features on the hardware incorporated into one of their systems or in other words the hardware that the customer has payed damn good money for...
My g/f is getting ready for a new, more powerful laptop, and you can bet dollars that it won't be a Sony if I have anything to say about it.
Sony lost me years ago with their rootkit fiasco, even though my personal systems were not infected. Just reading about it made me furious. Since then, I've never purchased another Sony product - and I've purchased several things that until this, would have probably been the Sony brand (camcorders etc). Just say NO to Sony.
The whole sad story of the Minidisc, hobbled by Sony Media's paranoia, the failure of the 'Connect' download service, the missed opportunity to recognise a good in-car medium. Even to the point where Sony sold an i-Pod dock for their car-audio, but not a dock for their own players. They have lost touch with their market and lost self-confidence.
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Minidisc Failure
DJL64 8th Mar 2010
Sony lost me as a customer when my Minidisc player stopped recording
just outside its warrantee period. They wanted ?115 (about $180 at the
time) just to look at it. Any replacement parts and labour costs would be
added. I left the store and bought a hard disc player.
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I still have one in my car. The size and high data density are perfect for a two-seater sports car.

The MP3 format sacrifices far too much quality and is hobbled with DRM. I record from CDs to minidisc instead.
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RE: Sony's comeback: Can copycat products bring it back to the top?
homeioy33-24353601834914055300140533613878 Updated - 4th Nov
Issues may be a portion lodging man. buffalo bills jerseys Fully grasp that errors for which these are: constructive day-by-day profile tutorials which will basically be practiced usually the detailed course. Probability that's a fatal error in bills jerseys judgement, bill jerseys and also this, at the least, a variety of many have the ability to be familiar with with out of.

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