While Sony managed to hit a home run
with its PlayStation 4 being priced $100 below the baseline Xbox One, the company's other divisions aren't faring as well. The mega-corporation has largely struggled ever since the economic downturn began in 2008, and things have finally come to a point where it's going to have to make major changes in order to maintain a sustainable business model. Sony has this week introduced plans to "restructure its organization to maintain its competitiveness in an evolving consumer electronics market."
It's a tough pill for a company as large and as prominent as Sony
to swallow, we're sure. Sony's looking to cull headcount by 5,000 globally, and here in the United States, it will be shutting down 20 U.S. Sony Stores. "While these moves were extremely tough, they were absolutely necessary to position us in the best possible place for future growth," said Mike Fasulo, President and COO of Sony Electronics. "I am entirely confident in our ability to turn the business around, in achieving our preferred future, and continue building on our flawless commitment to customer loyalty through the complete entertainment experience only Sony can offer."
Sony has seen profits shrink to nearly zero in the television business, and has seen its PC business become one that isn't even worth holding onto (it's looking to sell that
). Beyond TV and PC, what's left for Sony? There's music, entertainment, and gaming, and little else. The company is having to re-shape itself to fit into a world where Sony doesn't rule the consumer electronics universe -- a very different position than the one it was in during the 1980s and 1990s.