Staff Comment

Sony move has me baffled   

I think most people would agree video conferencing had a good year in 2009 - relative to other av technologies that is i.e. it showed a small drop in sales rather than 20 per cent+ drop like projectors & plasma/LCDs

The reasons for this? well swine flu and the recession have to take some credit - people just didn't want to/couldnt afford to travel, and spending £5000 for an HD vcon system (a price lower than it's ever been) stacked up as a pretty good investment against a travel budget of £50,000/£100,000/£200,000.

 

So I was mystified when Wainhouse Research reported Sony had decided to pull out of video conferencing in EMEA (it has already done the same in N America).

Far be it for me to dictate Sony's corporate policy (I wouldn't know where to begin quite frankly) but the video conferencing market in 2010 looks quite attractive to me because; 

1) There aren't a huge amount of players in this market (even less so after the Cisco/Tandberg deal), so the competition doesn't seem hugely stifling

2) Cisco are about to spend millions advertising the technology to ALL sectors following it's purchase of Tandberg (i'm sure Logitech will spend some marketing cash as well after buying LifeSize), so other manufacturers will reap the benefits of that

3) the recession isn't going to go anywhere to quickly, at least not in the 1st half of 2010, so travel budgets will still remain frozen

 

Also, Sony already makes screens and video cameras so it's in a good place to provide the whole package without too much added cost.  The Ziris digital signage system (using PS3's as processor units) has already shown Sony is well capable of utilising it's full product base.

I expressed this bewilderment to someone from Sony at BETT last week but was met with a response so heavy with spin it would make Malcom Tucker proud.  Added to that I have spoken to at least one angry Sony dealer, upset at the decision and the way it was communicated, given the time & effort they have put in promoting Sony's vcon products.

All Comments

Charles Adams January 19, 2010

Who is Sony these days anyway?

A strong image with a fading goodie box?

The world has moved on since the Betacam and the Walkman. Some of us can remember the arrogance and aloofness of the after sales service  and the fact they were left standing at the starting gate  by mobile phones (and had to buy Erricson) and of course digital recording and the Ipod.

Peter Lloyd January 19, 2010

In the old days (five years ago) Sony vcon at least achieved 3rd place in the market, but the company never managed product development and marketing as consistently as its displays business - which also saw a few false starts in the noughties. Maybe it now thinks it is too far behind to catch up with the likes of Cisco and Logitech entering the market.

Greg Jeffreys January 20, 2010

Although I might be projecting issues concerning my own company(!) I suspect the answer is focus. I think Peter's analysis is correct. They've asked themselves: 'can we be the best in this market?' 'Do we have a great product offering and development pipeline?' If they couldn't award themselves enough points in those kind of considerations, then the next line might be 'OK, then let's put our resources into something we're great at, and keep focused.'

Charles is not alone in making observations like his about the brand these days. Maybe they need some clear category winners again before the Sony brand magic fairy dust can work again?

Andrew Smith January 22, 2010

I think Peter is right, Sony probably thinks it is too far behind to catch up and make serious money in the market, so has dropped VC to concentrate on other more profitable areas where it has a lead or greater market share. However, don't write Sony off just yet. After all, they must be doing something right when the judges at the AV Awards in 2009 gave Sony the prize for 'Green Project Of The Year' (if I remember correctly) for a TV with an on/off button!

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