Posted by: Jason Tramer
95rofit reduction, Blu-ray, Sony
I remember a time when the Sony brand was synonymous with top quality equipment. When I bought my first home theatre system every component in it was the Sony brand and while that cost a pretty penny it was well worth it.
Well fast forward, I am not sure how many of you have been buying Sony equipment lately but while they are certainly still good that premium edge is gone and yet the premium price tag remains.
This might explain the horrific financial forecasts they have been putting out lately, far worse might I add then other companies in the same field. When your company experiences a 95% profit reduction in one quarter then that is a clear sign you are doing something very wrong.
Seems like Sony exec’s have drinking the company kool-aid lately and think that there name is big enough that they could put out average equipment for a premium price tag and people will buy out of sense of brand loyalty or sense of nostalgia.The other factor is Sony’s constant belief that people in some way like their proprietary formats. Sure Blu-ray won but a what cost? They are hurting right now and Blu-ray was their success story for Sony format’s which is sad as all hell.
In hard financial times people will spend money but they want to see the value and it just isn’t with Sony anymore.