Strategic Move
Sony is the ultimate hardware company — TVs, cameras, phones, PlayStations. But, it is becoming a software company by design. It is a risky move for its image and long-time strategy. The company embarked on the new course in 2012 with its incoming CEO who was tired of earning pennies on the dollar for its gadgets. He is now heading a company that makes a record operating profit, primarily from software and intellectual property. Sony has been guiding investors toward its new strategy but they are still uncertain it will work in the long run. Left unsaid is the PR for consumers the company needs to do. Will they be confused about the Sony’s new path? Will they forget Sony’s hardware and move easily to its software? This is a situation in which only time will tell. Sony ruled home electronics for decades with high-quality and innovative equipment. It is sad to see them give that up, but the market has shifted and they must change or die.
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