November 17, 2019
What’s Happening to Sony? (The Rise and Stagnation of Sony)

What’s Happening to Sony? (The Rise and Stagnation of Sony)

you are watching ColdFusion TV [Music] hi welcome to another ColdFusion video previously in the last episode of the story of Sony we saw how they went from a flailing company making rice cookers and electric blankets to an innovative group of engineers who influenced American society with the breakthrough portable radio today we’ll continue the story from 1960 with a fine line of Sony’s global rights let’s begin in 1960 Sony would expand into the United States with the formation of Sony Corporation America shortly after this using the transistor technology that they had perfected five years earlier Sony would create the first transistor television the context TVs of the time was still huge because they were using massive bulky vacuum tubes mm so Sony’s model was a revolution much smaller than anything that had ever come before in 1968 so you would release the Trinity on TV it had twice the brightness of regular TV of the day and was the greatest TV product series of the entire century these Trinitron televisions were known for their great quality [Music] the Trinitron TV system was so good that it supported Sonia’s growth for the 30 years after its launch in 1968 before they’re all Japanese products are seen as cheap and low quality so you need color TVs change the perception of Japanese products [Music] 1975 saw the release of Sony Betamax I’m video tape format and camcorder the Betamax tapes system was far superior to JVC’s VHS released later that year but it ultimately failed as it had less tape running time and was more expensive in 1978 a Sony executive would take a trip to Europe to see a spin-off technology of the Philips laserdisc that could play audio Philips and Sony already had a healthy relationship since the late 60s and decided to pair up Philips was a world leader in optical video discs and Sony had considerable expertise in digital audio signal processing technology when the two companies joined forces they would create the digital audio discs now known as the compact discs it would be released in 1982 in July of 1979 Sony releases the first stereo cassette player called the Walkman it is considered one of the most iconic music players and has sold over 400 million units of course their portable music players before the Walkman but Sony’s was the first that was easy to use and convenient you really feel the music with the Sony Walkman Sony Walkman is a tiny stereo cassette player with truly incredible sound [Music] put on a Walkman and see the world and our whole new life the Walkman the Sony Walkman assured in the company’s golden age it created a brand new culture of listening to your own personal music outside in late 1982 the first CD player was introduced to the world by Sony and just three years later in 1984 that would create a portable version it was called the discipline Sony were on fire by the stage and according to cultural critic Stephen Bailey in this period Sony was the apple of this day and much more by the end of 1988 Sony had acquired CBS records for three billion dollars and renamed it Sony Music Entertainment and also Columbia Pictures Entertainment [Music] 1993 would be a year that would change the gaming landscape forever in November of this year Sony Computer Entertainment was established and one year later the phony PlayStation was released it was the first video game console to ship more than 100 million units the year 2000 kicked off with the release of the Sony Playstation 2 it went on to become the best-selling home console of all time the next year Sony would establish its own bank and Sony Ericsson mobile now known as Sony Mobile 2004 for the release of the PSP to compete with the Nintendo DS and the PlayStation 3 would come two years later in 2007 Sony would innovate yet another world’s first product the first OLED TV 2011 would see the PlayStation Vita and one of the first 4k TVs two years later the PlayStation 4 would be released and in 2016 for PlayStation VI heads that was launched according to one patent consulting firm sony has 366 patents for virtual reality all these achievements over the lifetime of the company and nothing short of remarkable but as some spectators are noticing Sony has been stagnating a little the company’s sales haven’t been what they used to and the clarity of their direction is little muddy let’s take a look at some reasons of why this is happening just quickly before we get to the company itself we should take a look at the background environment saini was facing when they started to falter in 1990 there was a devastating economic recession in Japan it was caused by a shift in the nation’s demographics and faulty central banking policies the Central Bank of Japan loaned too much money pushing up asset prices until it all finally burst in 1990 this resulted in rampant stagflation in the country wages fell prices stayed stagnant and businesses struggled it was so bad that there’s a name for it it’s called the lost score or the lost 20 years because of this recession Sony had to replace full-time staff with part-time staff and job security became scarce during this time of uncertainty and low staff morale sony had to start fighting off strong industry competition from a rising South Korea Taiwan and China the question must be asked why did these countries suddenly rise well in the 1990s and 2000s the global electronics industry experienced the structural change after the PC and internet revolution the industry began to standardize parts and outsource production and assembly work to companies in low-cost emerging economies this was cheaper and more efficient on a macro scale meanwhile most of Sony products were still being made in Japan which had a higher cost in the manufacturing pipeline than its competitors all of a sudden Japanese products for expenses compared to the emerging manufacturers when questioned on why he didn’t want to drop prices Sony Chairman Akio Morita said we are selling diamonds at the time this was true as many products were of high quality in the early 90s but eventually the other manufacturers got better at their craft and the quality of their products improved suddenly there wasn’t all that much distinction to justify Sony’s high price the next issue for Sony began in the year 2001 this is when hardware manufacturing began to make room for the endless applications of software it began with the iPod a device that uniquely music enthusiasts tied into a software like never before amazing little device for the thousand songs and it goes right in my pocket do you remember what it was like when you got your first Walkman remember that feeling when he’s sitting you gotta first walk in your hand in tightly Wow well I am picked up any mp3 player that hasn’t made me go Wow okay I want to carry this wherever I go this is the first thing that makes me to feel Wow okay but this particular trend really accelerated from the year 2007 with the iPhone with this Apple achieved a breakthrough innovation enhance it it allowed users to expand the functionality of their phones three applications developed by engineers and even individuals worldwide so how did Sony respond w key I’d a president of Sony during the early 2000s reacted by trying to comply in Sony’s audio and video technology departments with its IT departments I’d ace data that he just couldn’t do it the company was simply too big although he was aware that those are need to shift Sony’s business strategy he could not change the mindset of all 140,000 employees and managers the top leader is not a person with supernatural powers he said during this time I’d a even considered acquiring Apple in an effort to save himself sony has recently streamlined its operations focusing less on audio and visual manufacturing unfortunately according to one executives who spoke with The Times of Japan quote now that many excellent workers have left Sony as a result of structural reforms the company’s power of innovation has declined sharply end quote in the sphere of manufacturing Sony has been outmaneuvered by the Koreans Chinese and Taiwanese in fact in the early 2010 most of Sony’s profits actually came from their financial services and not their manufacturing operations in 2013 it was so bad that some investors suggested that Sony’s had just abandoned their hardware division and just stick to making financial loans even the entertainment area of the company has taken a hit it’s fallen into a two-way tie with paramount as Warner Brothers surges past in addition to this the Xperia phone brand have had disappointing sales and a backlog of sourcing issues and this isn’t to mention that Sony is getting steamrolled in the TV department by Samsung in short today the Sony is losing ground everywhere it’s simply too large too diverse in its categories and focused too much in the sub brand names with all of that being said it’s not all bad though in late 2016 Sony started to turn around the smartphone department was losing money all throughout 2015 but did manage to post a reasonable profit in 2016 they did this by streamlining the phone product range cutting costs and focusing harder and premium phones with profitable margins while identifying better target markets with this being said this doesn’t mean that Sony’s phones are doing well versus the rest of the market Samsung Apple and the Chinese brands still largely dominate the brightest spot for Sony is a PlayStation 4 it’s doing very well selling over 17 million units in fiscal year 2016 the strength of the ps4 has helped only reach its full first year of profit in three years the PlayStation 4 was so good that it amounted to 78% of all profit in q1 of 2016 the mother bright spot is Spain’s digital camera division and also their smartphone sensor division Sony’s smartphone camera sensors are used in other popular brands like Apple Samsung LG Motorola oneplus one and of course the Sony Xperia range there’s also talk of a new Sony smartphone camera that can shoot Full HD at get this 1,000 frames per second so now that we’ve seen how and why Sonia’s began to falter what are some solutions some analysts say that Sony needs to break from its past by completely transferring its existing businesses to overseas or even separate companies in a bid to create innovation since the PlayStation was so successful perhaps they should double down on that and focus on that segment things like partnering and content creators to make even more killer games for the ps4 line as well as some intuitive and addictive VR titles could really provide some growth doubling down on differentiation with their smartphone camera line does also have some potential all-in-all as we’ve seen time and time again on cold fusion this is a common problem for companies there Rises meteoric but when they become too large and diverse management becomes more fragmented and often bureaucratic and it becomes difficult to see what the next clear step is usually when this happens increasing competition creeps up from behind to steal some plunder in conclusion the future of sewing is hanging in the balance right now they’ve arguably been stagnating for over a decade but in the last year the company has been starting to sew some promising glimpses of hope ultimately we have to wait and see how they react to the environment moving forward that being said if there’s anything that was learned from Sony in the last sixty years from the previous video is that that’s got a very innovative DNA so a Renaissance is a possibility anyways that’s what we’ll leave a story of Sony today hope you enjoyed that I found it quite an interesting history to go through and kind of analyze whether been starting to falter if you’re new here don’t forget to subscribe to this channel and I also want to thank all of you for helping you pass a million subscribers I should have a little thank-you video coming out soon oh yeah if you want to see the previous video of the origins of Sony which is a fascinating story I think you really should watch that if you haven’t already I’ll leave it in the link below and also an end card at the end of this video but yeah anyway this has been to gogo you’ve been watching cold fusion and of course I’ll see you again soon for the next yeah these guys have a good one cold fusion is he thinking [Music] you

100 thoughts on “What’s Happening to Sony? (The Rise and Stagnation of Sony)

  1. Should have had more on Sony and the digital music player wars. Their insistence on ATRAC and SonicStage pretty much killed them on portable players.

  2. I have always bought SONY TVs, then I made the mistake of buying an LG because the Sale Price was irresistible. I gave it away to my daughter and tried a Samsung which was better, but not as good as SONY, so I just bought a SONY 49”. I’ll stick with SONY TVs.

  3. pretty soon there won't be shit left in this fucked up ass country!! every goddamn thing is is going away or already gone…… damn!!!!

  4. Sony needs to focus on PlayStation and Sony pictures of course and their smartphone camera line I'm not sure if I should keep making their TVs and their own smartphones

  5. The newest play station sure is high tech but extremely expensive for your average teenager.

    Their newest TVs sure high end but older TVs had soul, they lasted forever, they had at times better resolution, better color contrasts, and holy grail sound. Today all we have is a a flat TV hanging on the wall no soul no work of art.

    Sonys involvement in Hollywood is pointless, todays movies are generic movies with repeated sound effects, horrible modern CGI, made with todays crappy cameras with horrible resolution. Hollywood should have stayed with film no digital.

    Modern DSLR cameras sure they provide crystal clear photos, easy to use and they are fun…but old film cameras had soul, you became the camera, film had a resolution that digital cannot achieve.

    If Sony wants to win they need to stay affordable, and bring quality classic technology back to its place to compete against todays modern crappy technology.

    Todays technology has no soul

  6. Sony hifi circa 1975 to 1990 was excellent quality. There move to a Chinese production line seriously effected their quality.

  7. You are also forgetting that Sony dominated the broadcast industry with their $120K cameras, high quality lenses, editing gear. They sold that stuff everywhere. A sony broadcast edit suites where big money back in the day

  8. I love Sony products and I had their top of the line camcorders and Vaio computers. But in my opinion, what hurt Sony sales were its strict adherence to proprietary parts and accessories, and its inability to integrate with other technologies. For example, my almost 2k Sony Vaio computer , would not automatically pair with my Sony camcorder when connected. I had to have a Sony proprietary driver in order for it to work. Then if I wanted to convert the video, or add music, I had no choice but to use the Sony software, and drivers. Let me tell you the process wasn't user-friendly.

  9. I remember Sony used to be an absolute juggernaut in the 90s and early 2000s. Their Sony Ericsson walkman phones, Sony walkman music players, Sony Bravia TVs, Sony DVD players, Sony Playstation consoles (PSP, PS1 and PS2) and even their Viao laptops used to be top notch. Some of the best quality stuff in the world. Somewhere down the line, they started becoming arrogant and as a result, stagnant. The most infamous example of this was the PS3 and the seemingly infinite amount of money they spent on the Cell processor.

  10. You said Sony changed the image of quality with Americans. I beg to differ. In the 60s Honda was a houshold name and their motorcycles changed Japan's image of quality forever and motorcycling as well.. My 1st transistor radio was an 8 transistor Hitachi and we'd never heard of Sony till much later on. But granted Sony did ramp up quality with TVs and so on. Walkman was great as were later products till pricing hurt them. And there were 4 recessions in Japan during the 90s hurting all Japanese manufactured products.


  12. I would still always buy a SonY Tv over any other brand. I have a brand new LG, and would gladly swap it for an older Sony. They were always good with portable items , why not go back to microvision and get together and produce a full HD /2k portable projector phone, better than anything THAT IS OUT THERE .

    I do have a Sony , but it is a watchman , and only works with old tv signal which is alas no more.

  13. I'd go for the sony tv but it's expensive than the samsung for my needs! I got 42" 4k led with one remote samsung tv from walmart for $399.99 and equivalent sony was $599.99 with oldschool remote control. 😐 I chose samsung phone over sony because sony is ultra late for it's updates and there is no innovation in UI/UX and hardware so meh… 😒

  14. What this clip does NOT tell you is when SONY hired some British moron when their financial trouble began.They hired him to fix some of their losses and all he did was make it worse.He outsourced some of their products and had SAMSUNG make their DVD recorders and other products.Through SAMSUNG , SONY tarnished their reputation of making quality products because SAMSUNG makes poor quality garbage.I bought a SONY DVD recorder made by SAMSUNG and it didn't last a month.Some of the DVDs I made are unplayable thanks to them.The only quality thing SONY is known for now is PlayStations

  15. Pricing of their product is the thing that led down the company and the worst thing is they didn't learn from their mistake still their pricing is way more compared to other brands they think they are Apple and people will buy product no matter what is the price but thr reality is different they need to wake up otherwise they it will be disaster for them

  16. Imagine Apple was part of Sony, the landscape would be a whole lot different today. Sony already had good cameras and other innovations, this merger and acquisition would be huge.

  17. I loved Sony moved away from Sony because of their extortionate repair prices, got fed up with being ripped off! Sorry Sony but greed kills in the end, that's what will happen to apple in the end when everyone wakes up.

  18. i think sony and erricsons mergers end was the reason for the sony downfall…they were inventing masterpieces till 2011 but after that they decide to end their merger anf after that everything was finished for sony

  19. This video is still relevant today! Sony's problem is not the quality of their products! Oh No! Sony's problem is that they let their EGO go to their head! And every time that happens…You know what we get? The PS3 Launch ($600 USD!) ,Overpriced Tvs and a Censorship Happy Playstation Division! They better fucking not go Censorship crazy in the PS5 era Next-Gen! Who the fuck do they think they are? A new replacement for Nintendo?! (Even Nintendo has more Balls now! LOL!) #Holiday2020

  20. Japanese electronics were awesome. Build well and just worked!! Sony music however is pure evil, fucking up many artists lives. Remember when Prince started his symbol instead? Yeah, that was because of Sony Music.

  21. it is ALL THAT BAD…sony is cabal owned, they spy on you through ALL their products..just look at their 666% increase. They control and STEAL from all the music artists but didn't see Michael Jackson coming or see his brilliance for negotiation..before they knew it…Michael owned half the company….that is when they decided to smear campaign him as a pedo..which he is NOT…..what has happened and IS happening to Sony >> Michael Jackson, YES he IS alive…so sit back and watch Sony be brought to their knees…how long has Michael been "dead" >> 10 years

  22. The problem now Sony has with tvs and stuff is people don't care to pay the premium price of Sony products when you could get a Vizio which not as good but still good quality for half the price

  23. same as Panasonic, which still today makes the top rated TVs…as well as Sony…but now the technology is everywhere..and the cheapest prices win out. LG and Samsung are in their own high , with China right on their heels..Sony Playstation and their top notch cameras, must diversify.

  24. – what is happens
    – get involved into NWO
    – have forgot about public consumers have them connected with actors
    (anyone james bond movie new phone)
    – and the public is not actors, gone
    no more james bond movies no phones
    and now is toyota busy to be down
    – because most of world want car and they made carton network design based cars also honda
    once down or company closed
    – exist it not more
    – is never happens
    – exist not, not a family not a names everything staged for you just like most of wars terrorism etc etc
    (invented family for case)
    sinhzo abe and his jaxa and theirs NWO

  25. waw amazing video, learn a lot. hope sony will be ok in the future. at some point we must adjust with the world that always changing, and forget about our pride in the past. this is survival mode guys.

  26. Sony has a spot with me. I've got a 8mm camcorder sitting next to me and to look at it and handle it. The thing is AMAZING. Sony were the masters at designing electronics. The amount of buttons, buttons on buttons. It's just an amazing feat of engineering this thing. I'll bet there are a 100 mechanical switches/buttons on this thing that fits in your hand and that is the Sony I remember. I once for my birthday maybe 1984 or so got a sony walkman that I STILL can't find what it was or anything but this thing was beyond. It was probably 10mm larger then the cassette inside, complete geared and zero pulleys. Used those gumstick rechargables…thing blew me away. Unfortunately for a 10 year old it was not able to survive the abuse I put it through it was just to hi-tech. Wished to god I'd have kept it. It was black and I just can't find it anywhere on the internet. I've looked up "smallest walkman" and what comes up is larger then what I had but without proof there is no point debating.

  27. Japanese people are skilled and disciplined. I'd still rather pay more for quality Japanese-made electronics. Still lots of Pioneer stereo receivers around from the 1970's that sound better than the crap sold today.

  28. I love the Experia apart for one thing that stops my from ever owning another one. The volume. When listening to music with headphones on i can still hold a conversation even at full volume, its not good.

  29. I wonder how much headphones came into play with their stagnation? They were always my brand of choice. Then along came Beats by Dre, which were more of a status symbol. Sony still made great headphones but didn't have that trendy factor.

  30. "JVC", "Japanese Victor Group" which was essentially a tie-up between the then Matsushita, now Panasonic, and RCA Victor.

    What actually killed Beta as the dominant format is a law suit initiated by the entertainment industry, which in part was owned by people who preferred that Beta NOT become the dominant format.

  31. Ok,so Sony is just BIG,and needs to trim it down a bit..Make 3 FF and 3 APS_C cameras…Make more VR,games,and educational content…Start developing learning interactive centers like Samsung does,which keeps bringing in fresh,efficient ideas..make some smartphones like they did when it was Sony Erricson,like the P900,instead of what everyone is is doing..kind of a mix between Blackberry and Note devices..

  32. SONY don't make good speakers, their 7.2 plastic tower horn loaded speakers are the WORST (full size) speakers I ever heard. That is without a doubt.

  33. It's too bad…this video was published in 2017…and a lot worse happened since then for Sony. Just in the first quarter of this year, they recorded the worst net profit for phone division, and they are leaving European market. One of their biggest money maker which was image sensor unit for all the smartphone cameras…is losing battle to Samsung again…Samsung just came out with twice the capacity of Sony image sensor, and Huawei and other brands have announced they will leave Sony to Samsung.

    I love Sony…this is one brand I grew up with since I was a kid and would hate to see it go down.

  34. i still have working Sony electronics from 2010. Radio CD/Cassette player (played more then 3000 CDs, still no aging), my Sony vaio laptop (still running), headphone (still hanging on. one speaker broke but i can live with that), Sony portable world radio (only use it in summers), TVs. My mother still has a Sony Bravia that i picked out in 2008. Sony's are great

  35. What happened to Pye
    What happened to Astor & AWA
    What happened to RCA Motorola?
    The same shit that happens to everyone … new slave market with a lower exchange rate makes them cheaper, becomes middle class and the business moves on.

  36. The problem with sony is they start making garbage product, my ps one had to be flipped so that the heat is not accumulating in the bottom, and I bought $2000 vaio pc bear in mind this was year 2000, and the vaio totally disappointing, I had to claim warranty 7 times in 3 years, but what is interesting my sony tv is still working in good condition purchased in year 1995, and it has never once break down. Why can't they keep making quality product?

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