It’s no secret that Sony’s stock has been very low lately. I remember years and years ago when it was always constant around 48, and in only a few months it has dropped to the mid to high 30’s and it seems slow to rise back. With Sony’s stock dipping ten points in such a short time on the American stock market it is opening new rounds of criticism on the Internet. While we here at Sony Insider don’t necessarily agree with all points in an article by Don Reisinger stating that Sony should downsize, it does make us wonder. Reisinger calls on Sony by stating “Sony’s stock price is down more than 30 percent this year as its Vaio laptops fail to captivate audiences, its Playstation 3 still lags behind the competition, and its ill-fated attempts at holding on the Walkman brand have proven detrimental to its growth. And all the while, the company believes that it’s doing everything right and it can hold on to its position as the single company in the industry that can release products in practically every market and be successful.”
This is a somewhat fair summation, but Vaio is definitely captivating as money audiences as it can. There has been a major shift in the ultraportable laptop market which Sony enjoyed a sense of exclusivity in. However, their other brands are captivating audiences. PS3 is gaining momentum but it has been a huge investment, which was necessary for Sony to risk because it will eventually equal long term growth and profits. Reisinger is definitely right regarding Walkmans, which have been on the trail of Apple and other brands in terms of innovation, player usability and the software experience. I sometimes wonder if Sony had complied with drag and drop off the bat instead of the software if things would be different today. Lastly, the final point in the aforementioned quote is dead on – Sony releases way too many products and it is hurting them – have they stretched themselves too thin?
Reisinger’s article has some weak points, however, and makes me really wonder if the article is worth believing. He states “But right now, I’d say that Sony is only in the top five in HDTVs, Camcorders, and gaming. Everywhere else, Sony products need not apply.” which is obviously not true, there are dozens of other product lines and services that Sony has a high rank in for most of the general populace.
Furthermore, he states that “Sony has relied on its name for too long. The company needs to get out of those markets where it’s barely relevant and become a more agile company that’s capable of putting its money into those endeavors that matter most. “, yet doesn’t give any clear examples of what products/services that Sony is investing too much into. It sure seems to me that Sony is definitely investing a great deal in their core businesses and into untapped markets.
However, we can agree with this: “Being an also-ran isn’t acceptable anymore for Sony and it needs to start realizing that the future is in being the best in every market it competes in.”
