Sony is bleeding money - business strategy discussion

How did they count the "power" of the brand? When the majority cant buy your car because its expensive and aimed for a niche market you sure have a smaller sample to work with

It's in both reports; Pg 5 of the first one and on the second one it's listed in the TOC as pg.100, Methodology. And you don't need to own a product from a brand to have a perception of that brand. That's what marketing is for.

@RudeCurve - Thanks for the links. Interesting stuff.
 
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It's in both reports; Pg 5 of the first one and on the second one it's listed in the TOC as pg.100, Methodology. And you don't need to own a product from a brand to have a perception of that brand. That's what marketing is for.
I know that you dont have to own a product to have a perception. Thats why I asked about the methodology. I didnt read the methodology of course so I dont know how they contacted the research. It all depends on the questions you ask from the sample.
 
IMHO the "power" of a brand should be decided by 3 factors alone:

1) Does it easily create fanboys?

2) Is it able to instil a religious devotion in the fanboys?

3) Is it able to draw in the fanboys to such an extent that they relinquish all sense of logic and reason?

... ergo, Apple wins every time ;-)

:)twisted: I kid i kid)
 
Netflix is looking to expand internationally. I've heard they've hired localization people aggressively around here. Though the studios are going to demand higher and higher licensing fees from them so it'll be interesting to see if it takes off elsewhere.

I think Sony would have had a problem offering a digital music store back in the day because competitors would have been reluctant to make a deal with them. Only an outsider like Apple might have been able to bring all the studios together.

Sony's problem was software. People hated ATRAC not only because it was proprietary at a time when everyone was going MP3 but because it required transcoding and other processing just to load music to their players. I remember reviews pointing out how horrible their software was.

They even poached some guy from Apple to spearhead their software division but apparently nothing came of it.

Now, the digital audio player market has pretty much flatlined and growth is in smart phones. Guess which companies dominate that market. Yes software companies again. Sony Ericsson phones tried to compete with Nokias for high-end camera phones, before the smart phone wave hit, or tried to make pretty designs.

Sony never had the software DNA for the world we're in right now, software and services being the secret sauce for hardware. As soon as electronic products required putting more and more intelligence in them, with a UI to access that intelligence, Sony wasn't going to have a chance.

Even in hardware and industrial design, competitors have caught up. XBR doesn't carry the cachet that it used to (it doesn't help that TV has become a commodity business), as other companies are offering sleek displays. Sony had invested in some exotic display technologies (GLV, SXRD, OLED) but now it's reduced to being one of many vendors of LED-backlit LCDs. They try to sell VAIO laptops at a premium but bottom line, they're just another Windows OEM, which sometimes lead the market for thin, small designs but eventually is caught up -- every PC maker uses the same Chinese/Asian contract manufacturers.

NGP is interesting but it's using industry-standard tech, nothing like the Cell or Blu-Ray. So NGP is going to have to rely on exclusive IP, which are ports of PS3 games. Will that be enough, especially in a world of 99 cent smart phone games?

PS4 will face similar questions. Smart move is not to invest in custom processors or other custom components. But PS2 and PS3 were hyped with the Emotion Engine and the Cell, pushed by Kutaragi's vision of other fanciful uses (Cell Storage, Cell grid, etc) which never came to pass.

But the console business has become more about software now. Sony no longer has the big 3rd-party exclusives and while some of its first-party franchises are well-received critically, they're no longer the dominant system sellers that they were in the PS1 and PS2 days. Beyond game software, software services have become more prominent as consoles have become set tops for playing back digital video and audio. So the software front-end (XMB) and the online presence (PSN) have brought to light Sony's shortcomings in those areas.

Sony will have to prove they can compete on these fronts. Certainly the skeptics are having their day now.
Can i start off by saying Sony are not bleeding money or in financial trouble they have $12billion in cash reserves. Only in the gaming world would people say the the sceptics are having there day after the worst economic crash in decades, and a devastating earthquake/tsunami. Sony have invested very heavily into there software in the last few years and we'l see the fruits of that in the coming years!.
 
Can i start off by saying Sony are not bleeding money or in financial trouble they have $12billion in cash reserves. Only in the gaming world would people say the the sceptics are having there day after the worst economic crash in decades, and a devastating earthquake/tsunami. Sony have invested very heavily into there software in the last few years and we'l see the fruits of that in the coming years!.

Sure you can, but a $3.2b loss would be 25% of the cash reserves you mention. So the blood bank just got drained by a unhealthy amount.

As for financial trouble.. that is up to the investors to decide.

Sony could have been in a much stronger position if they were less arrogant and more open to the new market opportunities of which we discussed some in this thread.

How the #¤%"¤% can Apple be able to have Sony musc for sale all over the world via iTunes and be able to sell non DRM files while Sony isn´t able to have neither hardware nor an online shop for their own labels? They have some random shops popping up but no unified system that just works across all their platforms.

They could sell music on the PS3, TV´s and Mobile Phones. They could make it accessible on the PC as well. They could be the first to offer beyond CD quality music with 24bit/96khz files.

Instead they chose to just look stupid and incompetent while the competition runs of into the sunset with the girls and the money.



And the same goes for their movie division.
 
Display technology:
I remember when the first LED TV-s came out, back then there was lot of talk about RGB LED-s. Once a while , RGB LED talk ceased and all we see is white plus local dimming at most. It turns out Toshiba said white whatever was good enough:
http://techon.nikkeibp.co.jp/english/NEWS_EN/20090414/168714/

- Dont spend $$$ on RGB, sell crosstalking 3DTV-s with fake spec instead, leaking blue light.
- Great job guys, you did it. ^^
 
Perhaps RGB LED isn't worth the money with RGB OLED on the horizon? Maybe it was considered better to invest in that tech than spend the money on RGB LED only to get superceded within a few years.
 
How the #¤%"¤% can Apple be able to have Sony musc for sale all over the world via iTunes and be able to sell non DRM files while Sony isn´t able to have neither hardware nor an online shop for their own labels? They have some random shops popping up but no unified system that just works across all their platforms.

When I was undergrad we looked at Sony case study in one of my tute, so as I understand it, Sony is an example of company that's highly organic, they foster competitions within the company, So I imagine, Sony music and their hardware division, don't go along, each division do their own thing to come up with the best thing.

This method work for them but the changing market condition has somewhat restructure them. But I'm sure there are still lots of fighting between their divisions. They make an interesting case study, because they're quite disorganise as company and it shows, but that's how Sony is founded by its founder, that's what make Sony, Sony. Not a company that I want to work in that's for sure.
 
Sure you can, but a $3.2b loss would be 25% of the cash reserves you mention. So the blood bank just got drained by a unhealthy amount.

As for financial trouble.. that is up to the investors to decide.

Sony could have been in a much stronger position if they were less arrogant and more open to the new market opportunities of which we discussed some in this thread.

How the #¤%"¤% can Apple be able to have Sony musc for sale all over the world via iTunes and be able to sell non DRM files while Sony isn´t able to have neither hardware nor an online shop for their own labels? They have some random shops popping up but no unified system that just works across all their platforms.

They could sell music on the PS3, TV´s and Mobile Phones. They could make it accessible on the PC as well. They could be the first to offer beyond CD quality music with 24bit/96khz files.

Instead they chose to just look stupid and incompetent while the competition runs of into the sunset with the girls and the money.



And the same goes for their movie division.


Good thinking, they could be more agile in this business.


And off topic ..I were a CEO or Stringer would have a team of observers (or at least someone who is a counselor that you are aware) to search for possibly as good ideas to see what various reviews/opinions on good websites / forums(like Beyond3d ;)) can offer in addition to your company.
 
Inorganic quantum dot LED stuff seems much more solid to me than OLED, With OLED longevity still seems an issue with university research going on to prevent brightness drop & stuff. Generally I don't beleive in an eventual OLED takeover.

Oh, and meanwhile RGB LED finally went mainstream with DLP this year, laser also expected in following years.
 
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Inorganic quantum dot LED stuff seems much more solid to me than OLED, With OLED longevity still seems an issue with university research going on to prevent brightness drop & stuff. Generally I don't beleive in an eventual OLED takeover.
Whatever experimental technologies are out there, there are no alternative, real-world produced screens to compete with OLED either now or in the coming years. If I were a TV company a few years ago wondering where to invest, and having to choose LED or OLED, the advantages of OLED would have me wanting to be a big player in that field as it's clearly going to be desirable in many applications. I wouldn't sink serious money into research for products from 2005-2015 into any fringe technology that is a long way from being mainstreamed.

This is only as an explanation for the abandonment of some TV techs (SED anyone?). the fact Sony have invested heavily in OLED is only going to be good for them.
 
Sure you can, but a $3.2b loss would be 25% of the cash reserves you mention. So the blood bank just got drained by a unhealthy amount.

As for financial trouble.. that is up to the investors to decide.

Sony could have been in a much stronger position if they were less arrogant and more open to the new market opportunities of which we discussed some in this thread.

How the #¤%"¤% can Apple be able to have Sony musc for sale all over the world via iTunes and be able to sell non DRM files while Sony isn´t able to have neither hardware nor an online shop for their own labels? They have some random shops popping up but no unified system that just works across all their platforms.

They could sell music on the PS3, TV´s and Mobile Phones. They could make it accessible on the PC as well. They could be the first to offer beyond CD quality music with 24bit/96khz files.

Instead they chose to just look stupid and incompetent while the competition runs of into the sunset with the girls and the money.



And the same goes for their movie division.
Sony on the operating level are actually in very good shape for the future. Sony have done all the restructuring, made several smart acquisitions and i think they'l be looking at 8-10% operating margins once the economy, Japan gets back to normal. As far as Sony 's fiscal this year goes they had to factor in the expected $2billion cost of the earthquake, spend several hundred million buying mobile phone patents and before the fiscal year ended they bought the Cell chip plant off Toshiba. Even then $4billion losses were paper losses or paper gains!.

As far asApple stealing sony thunder i think Sony just became to big and bloated for there own good. As far as ps3's concerned it's done 2 things for them so far. 1. Bluray, but was it worth it?, 2. Opened up the possibility of a 3DWORLD. And 3. Cell?.
 
Sony on the operating level are actually in very good shape for the future. Sony have done all the restructuring, made several smart acquisitions and i think they'l be looking at 8-10% operating margins once the economy, Japan gets back to normal. As far as Sony 's fiscal this year goes they had to factor in the expected $2billion cost of the earthquake, spend several hundred million buying mobile phone patents and before the fiscal year ended they bought the Cell chip plant off Toshiba. Even then $4billion losses were paper losses or paper gains!.

As far asApple stealing sony thunder i think Sony just became to big and bloated for there own good. As far as ps3's concerned it's done 2 things for them so far. 1. Bluray, but was it worth it?, 2. Opened up the possibility of a 3DWORLD. And 3. Cell?.

Whatever the reason is they had a big loss.

As far as the PS3 is concerned? Where did that come from :)
For me the PS3 was the ticket to HiDef movies and to this day i am HAPPY it was part of the army that CRUSHED the HD-DVD alliance and send it into the grave.

In regards to Sony i think it started as a big disaster that cost them much goodwill with the BC scandal and general nerfing of the console, they played right into the hands of the haters and fueled the hatenet.

Things they did in order to reduce the money loss and get it into a competivie pricing instead of having more SKU´s.

But it helped them avoid a even bigger disaster with the HD-DVD getting beaten into a bloody pulp.

At least they have been seeing better sales as the price has gone down.
 
So are we going to do a thread on the FY 2011 earnings report?

Choice snippets. Whole thing:
Code:
Sales and operating revenue		      ¥7,181.3 billion      (-0.5%)
Operating income 		                ¥199.8 billion    (+528.9%)
Income before income taxes 		        ¥205.0 billion    (+661.8%)

NPS (division that includes PS3):
35.6 billion Yen of operating income on 1.579 trillion Yen of revenue.
 
So are we going to do a thread on the FY 2011 earnings report?

Choice snippets. Whole thing:
Code:
Sales and operating revenue		      ¥7,181.3 billion      (-0.5%)
Operating income 		                ¥199.8 billion    (+528.9%)
Income before income taxes 		        ¥205.0 billion    (+661.8%)

NPS (division that includes PS3):
35.6 billion Yen of operating income on 1.579 trillion Yen of revenue.

I thought SNE reported on the 25th?
 
Pretty good results, but hard to make heads or tails of some of it. NPS for example inclues Bravia TVs, BRD players, Home Theater (stereo/audio), consoles, PCs, and networked services such as Qriocity.

Basically NPS is everything that isn't Phones, Music, Movies, professional (BRD pressing for example) and financial services.

Still, it's nice to see Sony posting positive operating income despite recording a loss to its shareholders (the valuation allowances).

Also interesting that while Q1 - Q3 of FY 2011 posted positive operating income, Q4 of FY 2011 posted a loss (73.4 billion Yen). Hopefully that isn't going to herald a general downward trend in FY 2012. Net loss in Q4 (388.8 billion Yen) also completely wiped out all profits from the first 3 quarters, although again, that is mostly due to the 300 some odd billion Yen valuation. Still a loss is a loss. Especially since that loss directly impacts the stockholders.

Also interesting is that Revenue was generally flat between FY 2010 and FY 2011. With a few notable exceptions. Movies and Music had fairly large YoY reductions in revenue. Meaning that most of the profits and positive operating income was not due to growing the corporation but instead due to cost cutting and elimination of jobs.

So while revenue dropped ~33 million Yen YoY, consolidated income rose ~178 million Yen YoY. Sony basically cut fat out of the company but growth was stagnant and slightly down.

Regards,
SB
 
Pretty good results, but hard to make heads or tails of some of it. NPS for example inclues Bravia TVs, BRD players, Home Theater (stereo/audio), consoles, PCs, and networked services such as Qriocity.
In their own words:
  • The segment’s operating income significantly improved mainly due to a significant improvement in the cost of sales ratio coupled with an increase in gross profit from higher sales, partially offset by unfavorable foreign exchange rates.
  • A product category that favorably impacted the change in segment operating results (excluding restructuring charges) was the game business, reflecting significant cost reductions of PlayStation®3 hardware and higher unit sales of PS3 software.
 
Pretty good results, but hard to make heads or tails of some of it. NPS for example inclues Bravia TVs, BRD players, Home Theater (stereo/audio), consoles, PCs, and networked services such as Qriocity.

Basically NPS is everything that isn't Phones, Music, Movies, professional (BRD pressing for example) and financial services.

No - Bravia TVs, BRD players, Home Theater (stereo/audio) is all under "Consumer, Professional & Devices" division.
 
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