Why are so many major tech companies bombing?

[thermal]

These are all posts from the last several months:

"Sony's fiscal-year loss hit a record $5.55 billion, effectively making it the worst fiscal year in the company's storied history."

Sony posts record loss as revenue slides and issues mount | Business Tech - CNET News

"Japanese electronics giant Panasonic today reported a record net loss of 772.2 billion yen ($9.7 billion) for the year to March. According to Agence France-Presse, the shortfall was one of the worst-ever losses reported by a non-financial Japanese firm."

Japan electronics giant Panasonic posts record annual net loss of $9.7BN | GlobalPost

"HELSINKI

 

[dan330]

slow economy in the USA.. affects the rest of the world.

we are the major consumer of most products. we are not spending as much as predicted back 5 yrs ago. so all the companies that have ramped up are now hurting.

gaming console industry is hurting because of added pressure from mobile devices.

good tech are coming out off even cheaper labor countries in Asia.

 

[lunatic59]

(Energy costs up + Global Economy in turmoil)[sup]jobs[/sup] = less disposable income

 

[zuben el genub]

Could be what was included with article - You want a connected TV - only comes with a 3D model or certain size, and you want neither.

Apple and Android seem to be porting most of the games if you are talking about the handheld Nintendo DS. Why use that small screen when you can use a larger one?

I think Nokia made a mistake with windows. Nokia was popular in India and parts east.
If Windows makes like Apple to get phones and apps - how will the people in the boonies get a phone if you can only buy from a store? How fast will Windows deal with malware? Just saw a notice about 6.5 on phones being told to upgrade.

We are in a minority - Want neither a connected TV, nor 3D. Also don't want a TV over 21/24 inches. We listen more than watch, so why bother?

 

[IOWA]

These are all posts from the last several months:

"Sony's fiscal-year loss hit a record $5.55 billion, effectively making it the worst fiscal year in the company's storied history."

Sony posts record loss as revenue slides and issues mount | Business Tech - CNET News

"Japanese electronics giant Panasonic today reported a record net loss of 772.2 billion yen ($9.7 billion) for the year to March. According to Agence France-Presse, the shortfall was one of the worst-ever losses reported by a non-financial Japanese firm."

Japan electronics giant Panasonic posts record annual net loss of $9.7BN | GlobalPost

"HELSINKI

 

[DaSchmarotzer]

This one is easy. 95% of the reason is failure to adapt and people moving away from products with DRM.

I don't really understand what you mean by that, care to elaborate a little?

Most people around me don't even know what DRM means, so I'm curious.

 

[saywat?]

hp deserves to go down with the garbage quality laptops, pcs, and printers theyve been putting out lately

 

[IOWA]

I don't really understand what you mean by that, care to elaborate a little?

Most people around me don't even know what DRM means, so I'm curious.

You know what it is, but perhaps not the acronym.

DRM = Digital Rights Management. It's the thing that keeps people from using legally purchased media in the way they see fit. For instance, when songs sold from iTunes only played on the iPod, that was DRM.

However, Apple adapted to the market and blew up to be the biggest legal MP3 distributor in the world.

 

[DaSchmarotzer]

You know what it is, but perhaps not the acronym.

DRM = Digital Rights Management. It's the thing that keeps people from using legally purchased media in the way they see fit. For instance, when songs sold from iTunes only played on the iPod, that was DRM.

However, Apple adapted to the market and blew up to be the biggest legal MP3 distributor in the world.

Yes, I do know that. I wasn't clear enough, sorry.

I meant to ask how exactly DRM could have "ruined" the aforementioned corporations? In other words, what DRM policies do you think caused such loss? I don't really see it and I'm curious to know.

 

[zuben el genub]

Check out Sony's track record. They released CDs that would only play on one machine - DRM. You might lend it to someone and do Sony out of a sale. Sony backed down and apologised.

https://en.wikipedia.org/wiki/Sony_BMG_copy_protection_rootkit_scandal

They've had a couple of others, but I'm too tired to research.

 

[argedion]

I think another thing is that people are just using other mediums to get the same level if not better entertainment. Why bother buying a CD when places like walmart will sell you individual songs for .88 cents I mean why pay 15 dollars for a cd that only has two songs you really like anyways and the rest you don't care for? I can buy the two songs for less than 2 dollars and put them on any device I need to. Movies are being sold a lot of the same way now to making Optical media lose ground. If I can download a movie put it on a thumb drive and go to a friends house and watch it they why carry around such a bulky case and disk. Games why carry and Console and game cartridges when I can dl it to my phone and play it? If these companies are loosing money then it seems to me they are doing so because they are not being innovated enough to keep with the times.

 

[batgeek]

i blame George W. Bush. everyone does. for everything.

 

[MSUgEEk]

i blame George W. Bush. everyone does. for everything.

I really hope that was sarcasm.

Back on topic, the reason these companies are posting losses is, as said, failure to adapt. Sony puts out expensive products that cost 25% more than their competitors who are putting out good enough products to compete at a lower price. Prime example, why would I pay $500+ for a 32" tv in my bedroom when I can get one that will do for $300 from Vizio? I did this last year. Others are doing the same with other TVs. It's not that Sony quality is worse, but others have leapfrogged them. If I were buying any TV, it wouldn't be a Sony because I can get good enough, as good, or even better for less or the same price as a Sony in any size range. Same goes with their other products such as cameras (especially DSLRs).

As for Nokia...well, they've went with Windows phones instead of Android. Nobody buys regular cell phones anymore and Windows phones simply do not sell as well as Android and iOS. Nokia can't make an iOS device and they didn't want to make an Android device apparently, so now they don't sell many cell phones.

Panasonic and Sharp quality has went down the crapper. Where Sony is failing because others have caught them, Panasonic and Sharp are failing because they have slipped.

As for Nintendo, I think you're seeing the decreased prices of Xbox 360s and PS3s really cutting into the sales of the Wii which was a lower margin profit system anyway. The high volumes are gone and so are the profits. Most people who want a Wii, PS3, or Xbox360 now have one. All 3 are due for a refresh/new system soon so you won't see as many sales of any of those 3 from now on.

Just my analysis. I'm not a professional or anything, but that's just what it appears is happening from this consumer's eyes.