Sony has really had to face the brunt of an economy in recession – their product launches over the past year have all not been as significant as hoped, making them revise their projected losses to $2.9Billion – over double their previous projections of $1.1Billion.
They are now restructuring their organization to build two distinct business arms: the Networked Products and Services group (combining Playstation, Vaio and Walkman businesss into one unit) and the Consumer Division (focusing on TVs, digital imaging, home audio/video).The Chairman Howard Stringer is also taking the role of President now, hoping to spearhead the organization back to a more innovative track – here is what he has to say:
“This reorganisation is designed to transform Sony into a more innovative, integrated and agile global company with its next generation of leadership firmly in place. Consumers want products that are networked, multi-functional and service-enhanced utilising open technologies, and user experiences that are rich, shared and, increasingly, green.”
Hopefully this restructuring will bring their big divisions together for a stronger market presence than they have seen in the past 3 years. Such integration is necessary for them to ensure that the business lines don’t go off on their own tangents, and can reinforce each other by offering powerful combined services – e.g. their online content distribution system, the PlayStation Network.
We’ll find out about the implications of the restructuring soon enough – but for now, here’s hope that their new President will make the right decisions for putting their brand back on the consumer radar after losing significant market share to Microsoft and Nintendo.