Red as blood. That is the only way to describe the latest numbers of lacking income at Sony. A company that once was at the top of the hardware business with enormous successes such as the Walkman, the Trinitron TV technology and the PlayStation 1 and 2. A hardware company that lead the business with innovation for many years. Now the times have changed and some might be wondering why. The answer, however, is painfully obvious… Sony is no longer one company, but rather a gathering of businesses with opposite directed interests.
The three faces of Sony is their hardware business, Sony Pictures in the movie industry and Sony BMG in the music business. The main problem appears, however, in their software department. While the hardware business is trying to create open, innovative hardware, the two content businesses Sony Pictures and Sony BMG is trying to prevent that hardware from being used in piracy. Here is where the customer gets completely forgotten. We then see failures such as the rootkit fiasco in their CD publishing part and the Walkman relaunched that was supposed to smash the iPod but failed completely because of unusable software as it was too ridden with DRM and copy protection technology making it impossible for customers to use. The Walkman’s price was slashed by more than half, but little did it help. The software was useless and people kept returning their Walkmans as they saw them as broken.
Sony, however, learned nothing from this. They still struggle with technologies that Sony Pictures and Sony BMG wanted to push in order to control their customers. Think of the many failed formats Sony has tried to push: ATRAC, MiniDisc, SACD, MemoryStick and so forth. ATRAC is a perfect example here. When the rest of the market had already accepted MP3 as the standard and Microsoft was pushing WMA Sony kept forcing their poor customers onto ATRAC and nothing else. After several years of being practically the laughing stock of the MP3-player market with a ridiculously small percentage they finally yielded to MP3 and released the Walkman player which could play both formats. However, the software was so riddled with DRM og copy protection technologies that it failed completely. Hardware is only as good as its software. Why didn’t they learn?
Even though music has been distributed over the Internet for nearly fifteen years Sony BMG and the rest of the music industry still hasn’t found a digital strategy. In this field Sony is also showing its many faces. It wants to give its customers as many options as possible, but also to completely control their use. This can be seen clearly in the fact that Sony is one of the companies pushing the hardest for the power to use selectable output – a technology that takes away a lot of the consumers rights without asking. So on one side Sony wants to push HD content in all your equipment – on the other side Sony wants complete control to fully disable all your equipment and remove the ability to display the HD content.
Then came the PlayStation 3 and Sony’s newest push of technologies. Now it wanted its customers onto the Blu-Ray path, so that it could force new copy protection technologies onto its poor customers. Another HD technology riddled with DRM. However, when one focuses too much on technology and marketing and forgets about software, which has always been Sony’s soft spot, one is set up for a major disappointment – especially when one is as arrogant as Sony Entertainment. The PlayStation 3 didn’t quite know what kind of machine it wanted to be. It wanted to be a game console, but also a media center and a Blu-Ray player… but as everyone knows: The Jack of All Trades is a Master of None… And that also happened with the PlayStation 3, who is suffering greatly on the market today.The holiday sales has shown that in this time around Sony is way behind its two competitors…
What Sony failed to do Nintendo did to perfection. They focused their console on a major market and didn’t put everything into the console – only what the market was asking for. The result is remarkable – especially compared to the once master of the market, Sony. Even their newest competitor, Microsoft, understood where they needed to beat Sony. Microsoft didn’t have Sony’s innovation in hardware or even remotely their experience in this field. When it comes to software, however, Microsoft is million miles ahead of Sony. They made the right tools for developing software on their platform and they made a brilliant working network service in Live far ahead of Sony’s PSN, which most of all looked like a small afterthought from Sony in hindsight of Microsoft’s success. Microsoft success came from ensuring a lot more titles than Sony did – especially when it came to exclusives, where Sony was once master. Sony simply forgot that consoles are about games. At the same time Microsoft is cutting prices making it harder for Sony to sell consoles, who are already seen as expensive…
Times has changed. Hardware is no longer everything. These days a console is measured by its software and in that field Sony is having serious problems – not only with its countless delays, but also with the quality of the software, which almost always fails to live up to the hype. A clear example of Sony’s problem with software is that every game studio claims that it is much simpler and thereby cheaper to develop on Microsoft’s Xbox platform compared to Sony’s PlayStation platform – even such former Sony exclusives as Square Enix.What is Sony’s response to this criticism? Well, even more strange… They claim that they have made it difficult to develop on the PlayStation 3 on purpose to make it last the ten years they somehow expect this console to last – even though it is far behind all its competitors in every way… sheeesh!
The strangest thing about this is that Sony doesn’t seem to learn anything. They keep on lying through their teeth and spinning numbers in their marketing. They keep on screwing their customers with DRM and copy protection and the removal of consumer rights, using lobbying. One would think that a company that makes a PR nightmare like the CD rootkit would learn something, but it doesn’t seem to happen. What Sony needs a common sense czar…