Sony Entertainment
Sony, in full Sony Corporation, is a major Japanese manufacturer of consumer electronics products. It also was involved in films, music, and financial services, among other ventures.
By 1960 business in the United States had prompted the creation of Sony Corporation of America, with headquarters in New York City. When the company opened its store on Fifth Avenue in 1962, it unfurled the first Japanese flag to be flown in the United States since the beginning of World War II.
At the 1964 New York World’s Fair, Sony introduced the MD-5, the first all-transistor desktop calculator. In 1968 the company shipped its first Trinitron colour television. By 1971, 40 percent of Japanese households had colour television sets, so Sony introduced the first colour video cassette recorder (VCR), which led to its introduction of the Betamax VCR in 1975. The Betamax, though widely considered the best VCR technology ever developed, was more expensive than its competitor, the VHS (Video Home System). As more and more studios and video stores turned to VHS, Betamax lost market share, and Sony finally introduced its own VHS in 1988.
In 1979 the Sony Walkman portable tape player hit the streets. Although Sony’s engineers were skeptical about designing a device that could only play and not record, Morita insisted on developing the product, saying he would resign if the Walkman was not a success. The Walkman was an international sensation and eventually sold hundreds of millions of units. The first compact disc (CD) player emerged in 1982 from a development agreement between Sony and Dutch manufacturer Philips Electronics NV. Sony provided pulse-code modulation technology and combined it with Philips’s laser system. The failure of Betamax had taught Sony a lesson; the format standard for CDs (and later digital videodiscs [DVDs]) was agreed upon by a wide range of companies in Japan, Europe, and North America. The next year Sony introduced the first camcorder.
By the late 1980s, Sony executives, especially the company president and the chairman of Sony Corporation of America, Norio Ohga, wanted to add entertainment content to Sony’s operations. In 1988 it bought CBS Records Group from CBS Inc. (now CBS Corporation), thus acquiring the world’s largest record company, and the next year it purchased Columbia Pictures Entertainment, Inc. The Columbia acquisition, the largest to that time of an American company by a Japanese firm, ignited a controversy in the United States. The controversy was fanned by Morita’s contribution to “No to ieru Hihon” (“The Japan That Can Say No”), an essay written with Japanese nationalist Ishihara ShintarÅ in 1989. They claimed that Japan no longer depended on the United States and was a stronger, better nation than its postwar ally.
The early 1990s were difficult years for Sony. The Japanese economy entered a decadelong recession, and both Ibuka and Morita suffered strokes (in 1992 and 1993, respectively). Morita officially retired in 1994 and died in 1999. With its founders no longer at the controls, Sony declared its first loss, more than $200 million, in 1993. Despite the business turmoil, Sony continued to design and deliver new products. In 1994 its entertainment division introduced its PlayStation video game console to the Japanese market. By 2002 the game unit was contributing more than 10 percent of the company’s yearly revenues. Another major profit centre was Sony Online Entertainment, particularly its Internet virtual reality game EverQuest. The company’s entertainment group also captured the imagination of many people with its robot dog, AIBO, introduced in 1999. In 1997 Sony introduced the VAIO line of personal computers. The VAIO was a high-quality and expensive system that the company marketed to users interested in developing or playing multimedia programs.
In 2005, following further disappointing annual financial reports, Howard Stringer was elevated from chairman and chief executive officer of Sony Corporation of America to chairman and chief executive officer of Sony Corporation. Although the appointment of a non-Japanese to head the parent company surprised many, some two-thirds of Sony’s employees worldwide were non-Japanese. In 2009 Stringer also became president of Sony’s electronics division.
In an effort to revive Sony, Stringer focused on streamlining operations and lowering costs. The company continued to struggle, however, posting record losses as Sony’s key consumer electronics sector declined. In 2012 Stinger stepped down from his various posts and was succeeded by Hirai Kazuo, an executive in the company’s video game division. Under his leadership, Sony concentrated on consumer electronics while undertaking numerous cost-cutting measures, including selling various real-estate holdings. Notably, in 2013 Sony sold its U.S. headquarters in New York City for more than $1 billion.
By 1960 business in the United States had prompted the creation of Sony Corporation of America, with headquarters in New York City. When the company opened its store on Fifth Avenue in 1962, it unfurled the first Japanese flag to be flown in the United States since the beginning of World War II.
At the 1964 New York World’s Fair, Sony introduced the MD-5, the first all-transistor desktop calculator. In 1968 the company shipped its first Trinitron colour television. By 1971, 40 percent of Japanese households had colour television sets, so Sony introduced the first colour video cassette recorder (VCR), which led to its introduction of the Betamax VCR in 1975. The Betamax, though widely considered the best VCR technology ever developed, was more expensive than its competitor, the VHS (Video Home System). As more and more studios and video stores turned to VHS, Betamax lost market share, and Sony finally introduced its own VHS in 1988.
In 1979 the Sony Walkman portable tape player hit the streets. Although Sony’s engineers were skeptical about designing a device that could only play and not record, Morita insisted on developing the product, saying he would resign if the Walkman was not a success. The Walkman was an international sensation and eventually sold hundreds of millions of units. The first compact disc (CD) player emerged in 1982 from a development agreement between Sony and Dutch manufacturer Philips Electronics NV. Sony provided pulse-code modulation technology and combined it with Philips’s laser system. The failure of Betamax had taught Sony a lesson; the format standard for CDs (and later digital videodiscs [DVDs]) was agreed upon by a wide range of companies in Japan, Europe, and North America. The next year Sony introduced the first camcorder.
By the late 1980s, Sony executives, especially the company president and the chairman of Sony Corporation of America, Norio Ohga, wanted to add entertainment content to Sony’s operations. In 1988 it bought CBS Records Group from CBS Inc. (now CBS Corporation), thus acquiring the world’s largest record company, and the next year it purchased Columbia Pictures Entertainment, Inc. The Columbia acquisition, the largest to that time of an American company by a Japanese firm, ignited a controversy in the United States. The controversy was fanned by Morita’s contribution to “No to ieru Hihon” (“The Japan That Can Say No”), an essay written with Japanese nationalist Ishihara ShintarÅ in 1989. They claimed that Japan no longer depended on the United States and was a stronger, better nation than its postwar ally.
The early 1990s were difficult years for Sony. The Japanese economy entered a decadelong recession, and both Ibuka and Morita suffered strokes (in 1992 and 1993, respectively). Morita officially retired in 1994 and died in 1999. With its founders no longer at the controls, Sony declared its first loss, more than $200 million, in 1993. Despite the business turmoil, Sony continued to design and deliver new products. In 1994 its entertainment division introduced its PlayStation video game console to the Japanese market. By 2002 the game unit was contributing more than 10 percent of the company’s yearly revenues. Another major profit centre was Sony Online Entertainment, particularly its Internet virtual reality game EverQuest. The company’s entertainment group also captured the imagination of many people with its robot dog, AIBO, introduced in 1999. In 1997 Sony introduced the VAIO line of personal computers. The VAIO was a high-quality and expensive system that the company marketed to users interested in developing or playing multimedia programs.
In 2005, following further disappointing annual financial reports, Howard Stringer was elevated from chairman and chief executive officer of Sony Corporation of America to chairman and chief executive officer of Sony Corporation. Although the appointment of a non-Japanese to head the parent company surprised many, some two-thirds of Sony’s employees worldwide were non-Japanese. In 2009 Stringer also became president of Sony’s electronics division.
In an effort to revive Sony, Stringer focused on streamlining operations and lowering costs. The company continued to struggle, however, posting record losses as Sony’s key consumer electronics sector declined. In 2012 Stinger stepped down from his various posts and was succeeded by Hirai Kazuo, an executive in the company’s video game division. Under his leadership, Sony concentrated on consumer electronics while undertaking numerous cost-cutting measures, including selling various real-estate holdings. Notably, in 2013 Sony sold its U.S. headquarters in New York City for more than $1 billion.
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