Sony, which is expected to be announcing it's first annual loss in the last 14 years, is restructuring their management team and consumer electronics divisions. Effective April 1. Chairman and CEO Howard Stringer will be taking on the additional title of President.
The reorganization of Sony's consumer electronics business appears to be aimed at coming up with a single vision for related products.
Their Playstation, VAIO, and Walkman product lines will be part of the new Networked Products & Services Group. It will also include Sony Media & software, who will be responsible for compatibility across those product lines.
The rest of Sony's consumer electronics lines will be part of the New Consumer Products Group. The Common Software and Technology team and Manufacturing/Logistics/Procurement team will be responsible for coordinating design and manufacturing strategies between the two groups.
This seems long overdue given Sony's apparent lack of focus across product lines. As the only company to manufacture PCs, multiple gaming platforms, and audio/video equipment you would hope they could do better in tough economic times.
At the same time, what it doesn't address is the apparent disconnect between Sony's consumer electronics and entertainment businesses. Despite owning both a major record label and movie studio, Sony has been unable to compete with the media offerings from Microsoft's Xbox Live! service.
Microsoft, which owns neither of those, has been able to leverage the gaming market into a home entertainment revenue stream. They've even connected their consoles to offerings outside of Xbox Live!, including Netflix Watch Instantly.
Sony originally marketed the PS3 as a complete home entertainment system. They have all the corporate assets necessary to make that a reality. Hopefully this corporate shakeup can do just that.
Their Playstation, VAIO, and Walkman product lines will be part of the new Networked Products & Services Group. It will also include Sony Media & software, who will be responsible for compatibility across those product lines.
The rest of Sony's consumer electronics lines will be part of the New Consumer Products Group. The Common Software and Technology team and Manufacturing/Logistics/Procurement team will be responsible for coordinating design and manufacturing strategies between the two groups.
This seems long overdue given Sony's apparent lack of focus across product lines. As the only company to manufacture PCs, multiple gaming platforms, and audio/video equipment you would hope they could do better in tough economic times.
At the same time, what it doesn't address is the apparent disconnect between Sony's consumer electronics and entertainment businesses. Despite owning both a major record label and movie studio, Sony has been unable to compete with the media offerings from Microsoft's Xbox Live! service.
Microsoft, which owns neither of those, has been able to leverage the gaming market into a home entertainment revenue stream. They've even connected their consoles to offerings outside of Xbox Live!, including Netflix Watch Instantly.
Sony originally marketed the PS3 as a complete home entertainment system. They have all the corporate assets necessary to make that a reality. Hopefully this corporate shakeup can do just that.
