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General Asylum General audio topics that don't fit into specific categories. |
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General Asylum General audio topics that don't fit into specific categories. |
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In Reply to: the only one hurt by your old remarks is you today :-) posted by Ole Lund Christensen on February 16, 2007 at 10:27:33:
<< When a technology have become a cheap commodity, the big companies will try to force a new format with better profits on the buying public. >>This is the last resort of of dying behemoths. You weren't around in the US during the '60s, but an interesting thing happened here. The giants of the consumer electronics industry at that time (RCA, Zenith, GE, et cetera) had been dominating their market for nearly 50 years. Then in a matter of a few years, they got slaughtered and either went out of business or were dismantled.
Why? Because the Japanese companies made products that were less expensive and offered performance that was "good enough" for the average consumer.
And now the same thing is happening to the Japanese companies. The fact that PS2 contributed 50% to Sony's bottom line a year or two ago only shows what terrible shape they are in. They don't make money with TV's, or computers, or Discmen, or DVD players or any of what should be their core businesses. Instead, they are reduced to trying to stay at the forefront of that most faddish of products -- video games.
For a while, they made money selling DVD players. Then when it became a commodity, they couldn't keep up with the Chinese. Why? Because the Chinese companies are making products that are less expensive and offer performance that is "good enough" for the average consumer.
So you see, history is repeating itself. It's only a surprise for those that don't study it. (If you really think I'm wrong, why don't you go ahead and invest your life savings in Sony stock?)
For Sony (and you) to think that they can save themselves by offering higher performing products at a higher price is pure foolishness. That would be like thinking that if only RCA had offered a high performance TV 35 years that cost 5x what the Japanese models did that they would still rule the world of consumer electronics.
The funny part is that you think what Sony is doing is a *good* thing. You are probably one of those kind of guys that happily waits in line to buy the latest abortive fiasco from Microsoft, thinking that it will somehow improve your life. And you happily give Bill Gates even more of your money.
<< Small companies get hurt everytime. >>
Only the ones that make bad decisions. Our business was up 40% last year, which was up 50% over the year before that, which was up 40% over the year before that.
Sorry about Gamut and your aborted SACD player and all that.
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Follow Ups
- You really don't get it, do you? - Charles Hansen 17:09:31 02/16/07 (1)
- you are hardly the sole source of wisdom .-) - Ole Lund Christensen 08:41:07 02/17/07 (0)
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