First Annual Loss for Sony in 14 Years
- By: Jerry Del Colliano
- - Reviewer's System
- Category:
- AV Receiver News, Blu-ray Player News, Blu-ray Software News, Feature News Stories, Front Projector News, Industry Trade News, Music Industry, News, Source Component News, Video Gaming System News
- Resources & Links:
- Sony
- May 14, 2009

Sony reported their first annual loss in 14 years today; however the company beat their estimate as to how deep the loss would be. For the past year or so Sony has been slashing jobs, offering early retirements and closing factories as it deals with numerous pressing business issues. Nintendo has stolen precious market share with its Wii game machine over Sony's highly profitable Playstation 3. Apple's iPhone, despite only working on America's weakest network in AT&T, is dominant over any Sony phone currently on the marketplace today. While Blu-ray sales are strong, low-cost players like Vizio and Korean super-company Samsung, have eaten up much of Sony's dominance in the television market.
Sony is not alone in its troubles and unlike many American companies - for instance General Motors - Sony's products are still top-notch when you look at them across the board. Unlike other AV companies in the specialty side of the business, Sony has upper echelon engineers that can out-design and out-think any other company when it comes to hot new consumer electronics. If Sony wants to, they can build nearly any product better and often cheaper than the competition. This was proven by the Qualia project, which Sony built as reference products to lead the Sony line. Qualia products like the 004 projector, led a game-changing product line that addressed both performance and affordability. That was pure Sony. Why they stopped with Qualia I don't think I will ever understand.
Sony's problems are more market driven than product driven. Imagine a world where everyone's home isn't worth 40 percent of what it used to be 18 months ago. Couple that with 6.5 percent unemployment versus 8.5 percent, and watch Sony bounce back - especially if they market their way out of their hole. Low cost players sell on one thing only - price. Sony means more to companies than price. Sony means quality, innovation, ease of use and future-minded technologies and consumers know it. Sony simply needs to get back to that message, and they will be fine.
Keywords
Sony, Sony posts first annual loss in 14 years, Sony BRAVIA, Sony Qualia, Sony Qualia 004,
- Dr. Floyd E. Toole Receives 20...
- Silicon Image (SIMG) Show Firs...
- Viacom and Time Warner Find Mi...
- 5 Reasons Why You Need To Go Se...
- A New World Order - Where and H...
- AV Identity Crisis: Radio Shack...
- AV Manufacturers Need To "Floor...
- AV's Next and Biggest Generatio...
- An Open Letter To Audiophile Re...
- Apple Denies Rumor About 1080p ...
- April Showers Goes Wide Via iTu...
- Atlantic Technology and Solus/C...
- Best Buy Offers Buyout To 4,000...
- Best Buy Plans Thirteen New Sto...
- Blu-ray Limits Its Growth Rate ...
- Blu-ray and SACD in the Same Pa...
- CDs Sales Tank in 2008 While Bl...
- CEA and CNET Say Consumer Confi...
- CEDIA 2009 Show Report - Andrew...
- CEDIA 2009 Show Report - Jerry ...
- CEDIA 2009 Show Report - Ken Ta...
- CES 2009 Home Theater and Audio...
- CES 2009 Report From HomeTheate...
- CES Show Attendance Slips To 11...
- California Passes Anti-Flat-HDT...
- Can The Home Theater Business R...
- Cash For Clunkers - Meet The AV...
- Circuit City Liquidates But Cou...
- Circuit City To Relaunch As An ...
- Consolidation Is Taking the "Sp...
- Critics Say All HDMI Cables Sou...
- DTV Converter Coupons Now On Fi...
- Denon To Add VRS From Anchor Ba...
- DirecTV Investor Lends Over $50...
- Dish Network Loses Over 100,000...
- Dish Network's Profit Dips 81 P...
- Dynaudio To Distribute Octave A...
- Dynaudio's Puccini Sound System...
- Elevator Music Kings Muzak File...
- Embattled Final Loudspeakers Fi...
- First Annual Loss for Sony in 1...
- First-Ever McIntosh Boutique Op...
- Global TV Revenues Decline 12 P...
- Going Direct - The Gold Rush in...
- HD Giants Files Chapter 11...
- HDMI 1.4 - Another New Example ...
- HDTVetc.com Relaunches Online H...
- Hitachi Splits Off Consumer Gro...
- Hitachi To Acquire Remaining Sh...
- Home Theater Enthusiasts Can Ta...
- Home Theater Review Celebrates ...
- Home Theater Review Improves On...
- Home Theater Review Launches Ne...
- HomeTheaterReview.com Improves ...
- IMAX Chooses Audyssey Laborator...
- Improving The Carbon Footprint ...
- InFocus To Be Taken Private By ...
- Is 99 Cents the New Free For Mo...
- Is Cheap The New Green? Not For...
- Is Dish Network Looking To Get ...
- Kaleidescape Loses Legal Appeal...
- Klipsch Sells Aragon and Acurus...
- Krell Takes On An Investor To M...
- Krell To Recall Four Amp Produc...
- Large LCDs Break Sales Volume R...
- Last Chance at Circuit Liquidat...
- Legendary Music Photographer Ji...
- Legendary Speaker Designer Jim ...
- Lutron Sponsors Green Life Smar...
- Mark Levinson, Lexicon and Reve...
- Meridian Opens a Concept Store ...
- NEW HOME THEATER AND AUDIO/VIDE...
- NHT Goes "Dark" In Bad Economy...
- NHT To Relaunch As An Internet-...
- Netflix Pops 45% Gains In Q4 In...
- Nowhere To Sell: Specialty AV M...
- Obama Calls For Feb. 17 DTV Swi...
- Panasonic Buys Sanyo...
- Paradigm Cinema 90 CT System To...
- Parent Company of Stereophile &...
- Parent Company of Sunfire, Pana...
- Parks Associates forecasts over...
- Parks and Assoc. Say Consumers ...
- Pioneer To Leave The HDTV Busin...
- Polk, Bose & Video Players To S...
- Porn Interrupts Super Bowl Broa...
- Pound Wise and Penny Foolish - ...
- Procella Audio Launches With Hi...
- QED Cables Issues HDMI White Pa...
- Rumor: You Tube To Be Releasing...
- Samsung Inks a DRM Deal with In...
- Samsung and Blockbuster Ink VOD...
- Saving Audiophila Part 2: The R...
- Saving Audiophila: How To Get a...
- Should Sirius-XM (SIRI) Fire Th...
- Sirius XM In Fear Of Takeover F...
- Sirius XM Shows Loss In Overall...
- Sirius XM To Release iPhone App...
- Sirius-XM (SIRI) To Raise Rates...
- Sony Cuts 16,000 Jobs as the En...
- Sony and Best Buy To Sell Exclu...
- Sony's Quarterly Profit Dives $...
- Specialty AV Brands Look To Dea...
- Study Says HDTVs in More Than 5...
- Sunday's Super Bowl Was 2nd Big...
- Telarc Records To Stop Producin...
- The $2,500 and Under Room - How...
- The 10 Best Audiophile Speakers...
- The 10 Best Up-and-Coming Compa...
- The Limitation On Specialty AV'...
- The Lost Art of The High End Au...
- Too Big To Fail: AV Manufacture...
- Toshiba To Make Blu-ray Players...
- U.S Credit Freeze Hurting The H...
- VIZIO Licenses Digital TV Paten...
- Vizio Now Number 2 Flat HDTV Se...
- WADIA Founder, Don Wadia Moses ...
- What The AV Business Can Learn ...
- What if HDMI Actually Worked?...
- Will CES 2009 Flop Because of T...
- Wilson Audio To Release New "Sa...
- Winning and Losing In Las Vegas...
Today's Top Story
California Passes Anti-Flat-HDTV Legislation To Try To Save Energy -
As a resident of California who owns a "green home" complete with new windows, high efficiency air conditioners, space-age insulation and drought tolerant planting on over two acres of hillside - today's decision to toughen standards on HDTVs is a... Click for more...
Latest Industry Trade News
California Passes Anti-Flat-HDTV Legislation To Try To Save Energy -
As a resident of California who owns a "green home" complete with new windows, high efficiency air conditioners, space-age insulation and drought tolerant planting on over two acres of hillside - today's decision to toughen standards on HDTVs is a... Click for more...
Rumor: You Tube To Be Releasing 1080p Video -
Online review site, Lifehacker.com, is reporting that Google's uber-popular, free video download site, YouTube.com, will be launching a 1080p HD video service in the next few days. This news comes as players like Microsoft and Apple jockey for position in... Click for more...
Meridian Opens a Concept Store in Bangkok -
Meridian together with its exclusive distributor in Thailand, MRD Audio Co., are launching the first Meridian Concept store in the world in the centre of one of the world's most vibrant and exotic cities, Bangkok. The Meridian Concept store, situated... Click for more...
Too Big To Fail: AV Manufacturers Look To Big Distributor AVAD For Their Future -
Anybody who listens to the news in the last year or so has heard the term "too big to fail" when it comes to America's banks. Just in 2009 alone 209 banks have failed while taxpayers have "bailed out" larger... Click for more...
VIZIO Licenses Digital TV Patent Portfolio to SONY - Ends Dispute -
VIZIO announced that Sony Corporation has become a licensee under VIZIO's patent portfolio. VIZIO owns a substantial worldwide patent portfolio directed to digital television technology. "We are pleased with the result of our patent licensing efforts. It further demonstrates the... Click for more...
AV's Next and Biggest Generation of Clients Deeply Affected By Unemployment and Under-employment -
Baby Boomers have been the driving force behind both the audiophile business and most of the two-decade long rise in popularity of home theater. Economically for Boomers there have been far more good times than bad, with recessions feeling more... Click for more...
Samsung and Blockbuster Ink VOD Deal For HDTVs and Players -
Samsung and Blockbuster just announced the immediate availability of Blockbuster's vast and growing library of premium digital entertainment for rent or purchase on select 2009 Samsung HDTVs, Blu-ray players and Blu-ray integrated Home Theater Systems. Specific models featuring the new... Click for more...
Consolidation Is Taking the "Special" Out of Specialty Audio-Video -
I remember the first time I met Mark Cuban. My father, when he was the publisher of radio trade publication Inside Radio, ran a high end convention for top level radio executives that featured speakers like Peter Drucker and Steven... Click for more...
What if HDMI Actually Worked? -
Let me be clear with the fact that without HDMI there wouldn't be volumes of 1080p HD content, complete with beaming video, 7.1 uncompressed HD audio and all of those feature-laden supplemental materials that we get from Blu-ray. At the... Click for more...
Dynaudio's Puccini Sound System For The New Bugatti Veyron Grand Sport -
When launched, the Bugatti Veyron set new benchmarks in engineering and performance for a Super Sport, so when developing an audio system for the new Bugatti Grand Sport only the best would do. The all-new Puccini Sound System features dedicated... Click for more...




Comment on this article
5Sony is responsible for his own demise.
Here are the reasons:
1) taking production to China killed the quality control for the products...product failure was
over 30% when Sony went from Japanese workers to Chinese workers.
2) Sony changed name every 6 months from a great selling name Trinitron to 3 or 4 other
made up names in no ones language. ...confusing the customer.
3) They closed US mfg in Rancho Bernardo for television moving it to Mexico and all kinds
of petty things went wrong including the on-off button
4)The television design is user unfriendly....especially for the older buyers (the ones with the $$)
The hide the power switch...insisted all controls be menu based. I saw older buyers say...forget
it, its too complicated for us.
5) They abandon quality surround sound and components in favor a a 100 watt Receiver for
$149.00 that was crap. How much profit can there be in a $149 product?????????
6) The abandon brand building commercials that they did in early in the decade. Remember the older guy who goes to Russia and buys passage on a Russian Rocket...and they said, when your grand children ask where the money went show them the video?
7) They sold their products to Walmart with all the low priced leaders like RCA et al/.
This shows that just b/c you are a high paid executive in a global firm does not mean
you have good judgment....based on results...they have horrible judgement.
And don't forget the SACD fiasco.
Hey Jerry,
Interesting piece. Seeing Sony posting its first loss in fourteen years illustrates the struggle the world economy is facing. It's a painful reminder of what many of us are dealing with in these complicated times.
If I could make one request? Could you please save your digs on the US automotive industry?--"unlike many American companies - for instance General Motors - Sony's products are still top-notch".
Some Sony products are top-notch. Some are garbage. The same can be said for GM, and others. The 'autos' have taken enough abuse, some deserved, some not. Yes I am from the Detroit area. No I'm not some Union thug. I'm sick while I watch an industry that helped create the middle class, crumble. This is twice as nauseating, when I hear folks who likely drive foreign cars from California, trash companies that they really know little about. These are real people, and their families, being affected by this. Can we keep the discussion centered on our industry, and leave the pseudo-eco-political speak to Clear Channel?
I wondered as well, why they stopped Qualia. I wanted to get my hands on those $2500.00 headphones!!As far as their loss, no one is immune.
Sony reported their first annual loss in 14 years today, however the company beat their estimate as to how deep the loss would be.
Should be: Sony reported their first annual loss in 14 years today. The company however, beat their.........
Sony is not alone in its troubles and unlike many American companies - for instance General Motors - Sony's products are still top-notch
Should be: Sony is not alone in it's troubles and unlike many American companies, General Motors for instance, their products are..........
You're a lousy writer Jerry.
Post a Comment