Sony PlayStation Sales Finish Strongly In 2009, But Crippling $1.3 Billion Drop In Revenues Remain

Sony has stated December 2009 PlayStation 3 sales in the U.S. rose nearly 90 percent shattering the existing monthly record after a 25 percent price cut attracted holiday shoppers to the rapidly evolving console. PlayStation 3 game sales also advanced 60 percent from a year earlier, Sony said in an e-mailed statement. Software numbers were obviously incredible with massive hits like Uncharted 2: Among Thieves, Assassin’s Creed II, Call of Duty: Modern Warfare 2 and Final Fantasy XIII smashing sales charts. In the USA, Sony sold 726,000 PS3 players last December, according to NPD Group Inc. and Sony stated that in the five weeks following the last week in November they sold 3.8 million units worldwide. However, things are not so sunny overall in comparison to last year, where there has been a $1.3 billion drop in Sony’s revenues from its line of PlayStation systems.

Gamasutra has written some excellent thoughts towards PlayStation’s performance in 2009,

According to comments made by Wedbush Morgan analyst Michael Pachter, we estimate that PlayStation 2 software revenues dropped by around $700 million in 2009, compared to 2008. That decline alone would explain more than half of Sony’s loss. The PlayStation 2 hardware also received a price cut in 2009, which could have contributed another $150 million in lost revenue.

Another $225 million or more have come from the annual loss of 1.3 million PSP system sales. According to Creutz of Cowen & Company, the handheld software segment shed $200 million in annual revenue from 2008 to 2009, and we estimate at least half of that loss can be attributed to declining PSP software sales.

Without more precise figures, we cannot illuminate the situation further. However, the general outline is clear: The PlayStation 3 platform — albeit the subject of a recent price cut — is still growing, but the contraction in Sony’s legacy and handheld segments has overwhelmed those gains. Sony cannot revive the PlayStation 2, and that system’s revenue contribution is on a terminal trajectory. (To use Pachter’s terms, the PlayStation 2 will “cease being relevant in 2010.”) We furthermore remain skeptical that Sony can reverse the fortunes of the PSP, at least at retail.

By mid-2010 we should know more about whether Sony will continue to back the PSP platform, and in particular the premium PSP Go model. We would not be surprised to hear of a successor to the PSP in 2010, especially if it provides backward compatibility to first-generation PSP software and network integration comparable to modern mobile devices.

Sony does have several ace cards coming to the PS3 console in 2010 that could really capitalize on the momentum brought forth by the cheaper PS3 slim. Sony is planning to vigorously enhance the network content and services aspect of the PS3, as well as tapping into a wider audience through the introduction of a new Motion Controller. PlayStation 3 units will become available to play 3D stereoscopic games through a firmware update, scheduled to be available in summer of 2010. Playback of 3D content on “Blu-ray” discs will also be possible by upgrading PlayStation 3 with a further firmware update.

Samsung’s Billionaire Ex-CEO Lee Kun-Hee Checks Out Sony 3D TV

Lee Kun-Hee was a former chairman of Samsung Electronics until he resigned in Spring of 2008 due to involvement with a Samsung funds scandal (which he was later pardoned for). Here are some pictures of him at CES 2010 checking out Sony’s 3D TV experience, but of course he also checked out the other manufacturers booths extensively. Interestingly enough, CES 2010 was one of Lee Kun-hee’s first real public appearances since the whole embarrassing debacle in 2008. Lee Kun-Hee was quite outspoken at CES, stating that “Japan will not catch up to Samsung Electronics.” He also went on to say that “..he is not intimidated by other companies, such as Sony and Panasonic, to outpace them to the question of them gnashing their teeth waiting for the opportunity to rise above.”

Aside from being a CEO for many years for Samsung, he also happens to be one of the top South Korean billionaires with a net worth at more than 3 billion. Lee is married to Hong Ra-hee, currently one of the wealthiest women in Korea, who is also an executive director of the Hoam Foundation. His son is currently vice president of Samsung Electronics, his oldest daughter is a vice president of Samsung-affiliated Shilla Hotel, a luxury hotel and duty free store chain, and his second daughter is the vice president of Cheil Industries.

He also briefly gave a heads up on the third generation inheritance of Samsung Electronics; as reporters crowded around Mr. Lee, he gathered his two daughters and held their hands and said, “I should publicly show off my two daughters” adding more anticipation of Mr. Lee’s intention of the next company leader. When asked whether his two daughters are learning well, Mr. Lee responded saying, “They have lot more to learn and I still feel as though I am holding hands of two youngsters.”

He is the third son of the overall Samsung Group founder Byung-Chull Lee, who started the company in 1938. At the start, his business focused primarily on trade export, selling dried Korean fish, vegetables, and fruit to Manchuria and Beijing. In little more than a decade, Samsung – which means “three stars” in Korean – would have its own flour mills and confectionery machines, its own manufacturing and sales operations, and ultimately evolve to become the modern global corporation that still bears the same name today.

Venezuelan President Hugo Chavez Calls PlayStation Games ‘Poison’ To Children

The Associated Press is running a real hootenanny about Venezuelan President Hugo Chavez calling the PlayStation console and its games ‘poison’ to children. Chavez made the shocking statements during his weekly TV/Radio show “Alo Presidente,” and called on local manufacturers to make educational toys, and also dolls with faces and features like native Venezuelan people as “capitalistic” alternatives, such as a Barbie doll “have nothing to do with our culture.” However, the heat was really turned up when he directly stated that,

“Those games they call ‘PlayStation’ are poison. Some games teach you to kill. They once put my face on a game, ‘you’ve got to find Chavez to kill him.’”

I could only imagine the reaction of PR for Sony Venezuela. However, things took a really strange turn when Chavez turned that into a dynamic of international arms sales. Apparently, if a game has the ability to “bomb cities or just throw bombs,” then they are sold by capitalist countries to sow violence so they can “later sell weapons.”

Furthermore, apparently PlayStation games “promote the need for cigarettes, drugs and alcohol so they can sell them. That’s capitalism, the road to hell,” he added.

The AP also wrote that Venezuelan lawmakers in October passed a law outlawing the sale of “bellicose” games and videogames that can be punished with up to five years imprisonment. However, we’re not really sure if Sony is selling the PS3 there or not anymore. We checked out Sony Venezuela’s website and the link to the PS3 page is broken on the main site, but searching yields plenty of results.

From a business standpoint, it does hurt Sony when the leader of a country specifically calls out your brand and deems it in such a negative manner. It will be interesting to see if this has a financial impact on Sony’s PlayStation brand in this area over the next quarter or two.

Interview With The Designers Of Sony’s Sustainable Package

Making sure that packaging is easy to recycle has been a facet of environmental initiatives at Sony for some time. With the consumer perspective firmly in mind, designers committed to sustainable packaging are now expanding these activities. How can packaging be easier to manage after use? How can unboxing a new Sony product excite and satisfy people more than ever? Here, contributors to the Sustainable Package creation process (courtesy of Sony Design) take the lid off some of these efforts.

Nagasaka: What can we do for people and society through design? For the environment? Environmental considerations and principles of universal design guide us in development at Sony, and we hope our work makes a positive impact and raises awareness inside and outside the company. In these activities, one thing we focus on is sustainable packaging design.

Packaging is a direct, initial point of contact with people after their purchase. At this stage manufacturers’ intentions and messages must be very clear to consumers. Yet people only interact with packaging briefly, and it’s generally discarded immediately after removing products. This act of disposal is something we have studied. Inevitably, disposal may be a little inconvenient, but in areas with sorting regulations, it’s a source of materials for recycling. That’s why we approached user-friendly, eco-friendly packaging from the stage of disposal. And certainly, the packaging solutions we adopt are a reflection of Sony’s commitment to CSR. These considerations motivated us to propose sustainable packaging guidelines some time ago.

Nagasaka: We began by verifying packaging life cycles, including how packaging is used and disposed of after purchases. Research in Japan confirmed that people more often keep the easy-to-manage packaging for portable audio players, cameras, and similar products. This also applies to products with several included accessories. But what surprised us was how people tend to dispose of computer packaging immediately. We thought the boxes would generally be retained in case people sell the computer later or need repair. In fact, more people than we expected get rid of them immediately.

Optimal design development accounting for packaging life cycles is critical. Most packaging is designed to look attractive in stores, for example. But in reality, our customers’ involvement with packaging continues until it leaves their hands. For this reason, packaging that’s easy to sort and helps our customers identify what to recycle is better for them and the environment. That’s good design. Conventional packaging has often failed to meet these criteria, but we consider this an opportunity to design new relationships with our customers, so to speak.

We can summarize goals in packaging design by four keywords. The first is materials. We avoid using plastics and other materials derived from petrochemicals as much as possible, and we incorporate recycled materials. It’s a matter of reduce, reuse, recycle, and replace. Next comes usability. Packaging must be easy to open, for one thing. To encourage sorting, it must also be easy to take apart. Toward the end of providing useful information, boxes must be appropriately labeled. And finally, we seek a positive out-of-box experience (OOBE). In other words, when you unpack a Sony product, you should get the impression that both you and the environment matter to us.

Hata: After substantial research and discussion, it was time to start designing with our guidelines in mind. I was in charge of VAIO notebook packaging. In view of our findings—that most people usually recycle these boxes immediately—we wanted packaging that left the product easily accessible and could be recycled right away. Additionally, I suggested that we make the boxes flatter. This is doubly useful, because it’s convenient when bringing your new notebook home and it emphasizes the sleek body of VAIO notebooks. Most importantly, we can load more notebooks on a delivery truck at one time, which lowers costs and CO2 emissions in distribution. What would be the best box design and structure, toward this end? My work involved cutting corrugated cardboard and folding it, in a series of attempts to find out.

Hata: The finished design prototype resembled a briefcase. The front flap opens wide, revealing the notebook squarely in view—a nice gesture for those who just purchased the notebook. Showing the contents at a glance demonstrates clarity in design. Structurally, it’s more accurate to say the notebook is wrapped in corrugated cardboard than encased in a box. After you take the notebook out, you’re left with a single ply of cardboard. Just wrap the unneeded protective material in this and fold it up, and it’s ready for recycling.

The difficult part was deciding how to store the included accessories. Cables and other parts crammed into narrow spaces would certainly look cluttered. That would make a disappointing first impression. Packing the accessories in a box inside is simple enough, but it does increase the overall volume. After repeated attempts to deal with the accessories, we realized we could organize them in a box that also cushions the notebook. This way, we could minimize the size and volume of material while clearly identifying what parts to recycle and what parts to keep.

When I presented the concept to product planners and packaging engineers in the VAIO Business Division, their response was very positive. This division has always taken a stand for the environment. They sought to use the concept right away.

Ichimura: To apply Masayuki’s prototype in production, we needed to conduct an in-depth study of the design from several practical standpoints: ease of assembly, ease of storage, protection of products, and so on. It was critical to get support from packaging engineers who were experts in production and distribution.

We appreciated how the engineers anticipated every detail in manufacturing and product delivery. Meanwhile, those of us on the design team tried to see things from the consumer perspective. Our different viewpoints emerged when we discussed how the lid fastens, for example. The engineers advised to make the lid fasten securely, because different temperature in transport and storage might warp the cardboard and cause the lid to pop open. We reminded them that people would expect the lid to open easily, with no need to focus on unfastening it. Our engineers knew exactly what we had in mind. Throughout development, we gained insight from each other and took advantage of this opportunity to create optimal packaging, down to the last fastener.

Here you see the final notebook packaging. Open the box, and you’ll see a cardboard box (containing the user manual, among other things) sitting on top like a tray. Lift it out, and there’s the notebook. This tray-like box organizes documentation you should keep while also reinforcing the packaging and protecting the LCD screen of the VAIO notebook. Supporting the notebook on the side is the accessory box, just as Masayuki envisioned.

Kanada: Packaging for S-Frame digital photo frames was designed knowing that many people will buy the frames as gifts for others. I’ll talk a little about the original packaging. What sets digital photo frames apart from other products is that two recipients are involved. For every person who purchases a frame, there may be another person who receives it as a gift.

In this case, it’s a perfect opportunity to add digital photos of great memories before giving the frame to your friends or relatives. After you open the box, you’ll notice that we thought of providing an inner box you can use when giving the frame to someone. That’s the purpose of the white box inside— a thoughtful touch for the recipient. Also, we needed a straightforward design for this inner box, so it’s essentially ready for people to use for repackaging right away. But with this kind of product, measures to protect the frame might make the packaging too complex and hard to reassemble.

After discussing ways to solve this problem with our packaging engineers, we created easily removable and reinsertable pieces to protect the LCD panel. These pieces reinforce the package and cushion the frame. There’s a little design ingenuity here, too: the protective piece embellished with an S-Frame logo is also a thoughtful gesture for recipients. In fact, it takes just two steps to open the inner box, which you can even do with one hand.

Ichimura: Packaging is ultimately thrown away, but despite this, it should satisfy people and be environmentally sound, besides being easy to dispose of. Meeting all of these needs at a high level is what we do through sustainable packaging practices at Sony. What’s critical toward this end is a workplace environment where designers and packaging engineers can work together closely. Designers look to the engineers as experts in packaging structure and distribution. Once we apply our respective insight together, we can put our ideals of sustainability into practice.

Hata: That’s a distinct advantage of designing in-house. Innovative packaging doesn’t come from the power of design alone. From conceptual design to anticipating issues in distribution, a range of activities are involved. Knowledge gained from these projects was applied to existing sustainable design objectives, developed with our packaging engineers, which we pursue in routine design and packaging engineering.

Nagasaka: We have successfully practiced principles of sustainable design for some product packaging, but development along these lines has just begun. Looking ahead, we will continue to add to our repertoire of packaging that embodies these ideals as we extend these efforts to all Sony products.

These initiatives also respond to practical concerns. We see greater environmental awareness all around us. It’s a sign of the times, and regulations around the world reflect this. Even without the current interest in eco-friendliness, however, Sony would still work toward sustainable design as an obviously desirable goal. One day, we will suddenly realize that all Sony products and packaging embody these worthy ideals. That’s the goal we seek. Until then, we will continue doing our best.

In gifts, the packaging is really an extension of the product. All of our planners, designers, and packaging engineers shared the same vision for this product. That’s why we can offer the S-Frame in a box so ideal for gift-giving.

Sony’s TransferJet Hands On Experience

Last week at CES Sony finally brought a couple of products embedded with TransferJet technology that are ready for the market and for you to play with. TransferJet is a new Close Proximity Wireless Transfer Technology enabling the high speed transfer of large data files (photos, HD images, etc.) between electronic devices such as mobile phones, digital cameras, digital video cameras, computers and TVs. Using this technology, data can be sent at speeds of 560Mbps. Here is a little recap for some of you who are not familiar with this amazing way of wirelessly transferring content from one device to another.

TransferJet is an extremely simple wireless technology which eliminates the need for complex setup and operation. For example, just touching a TV with a digital camera enables photos to be instantaneously displayed on the TV screen. Alternatively, downloaded music content can be easily enjoyed by touching a mobile phone to a portable audio player. TransferJet can be used as a Universal Interface among a wide variety of consumer electronics devices.

At CES we have only witnessed wireless photo and video transfer between two devices. Currently Sony will be pushing two digital cameras to the market that are TransferJet compatible: DSC-TX7 and DSC-HX5V. To enable those cameras you will need to purchase TransferJet Memory Stick (MSJ-X8G) that we have unearthed earlier from FCC. If you are going to own two of those cameras, you will be able to easily swap images between the two or share it with a digital photo frame. I remember I was able to do so before with my Sony CyberShot DSC-G1 cameras however it utilized Wi-Fi between the two and involved a bit more complex but doable process of sharing and exchanging pictures.

Sony also came up with a TransferJet Station (TJS-1) – an external solution in the form of a USB dock that you can connect to your device (notebook, digital frame, TV, etc) and make it TransferJet ready!

So with this TransferJet Station it is pretty easy to store, view and share content. Viewing content on a PC or HDTV is a snap, eliminating the need for extra cables. Just set your camera on the TransferJet Station and it will display your photos for you.Also saving photos to your PC or hard drive is going to be easier, simply place your camera on the TransferJet station and it will move the files to your PC or hard drive. I was thinking of getting one and pair it with my VAIO Server VGF-HS1. As far as I remember last year Sony showed it off embedded within this circular looking server as well as VAIO TP1.

The last product that we checked out was a VAIO F series notebook with this techy embedded on its left-hand palm rest area (it so reminded me of Felica use on Japanese notebooks). It will work the same way, if you need to quickly transfer pics to  your notebook without any USB wires. Again I have done it before with DLNA enabled notebook and my Wi-Fi Sony G1 and G3 cameras, however the speed and simplicity of TransferJet beats Wi-Fi solution.

Sony also showed off the Japan-only Sony Ericsson Cyber-shot S001 KDDI/au phone with built-in Transfer Jet, which you can see more of in the video.

OK, big question…will this technology take off and will the consumers be utilizing it? Definitely time will tell and if the prices come down and more manufacturers jump on this trend, therefore more (let’s call it TJ) products will be out there, the results will be good! Meanwhile check out the video and let us know if you have any questions.

Sony Added a Couple New VAIO Mice to the VAIO Pack

We have seen a couple of new mice on the floor at CES, however these two have not made it there. Sony has a steady history of making new accessories to complement your new and your older VAIOs and these two are not an exception.

This wireless laser mouse (VGP-WMS30) comes in 2 flavors: black and white. It pretty much packs the same tech of all previous VAIO mice released in 2009, however the little USB transmitter that connects your wireless mouse is quite unobtrusive.  Here are some details for you.

Cruise through your workload or browse the internet with pinpoint accuracy using the VGP-WMS30 wireless laser mouse. In addition to a modern design, this wireless mouse features an ultra-slim wireless receiver which blends in with the contours of your PC. An 800dpi laser provides precise navigation while the ergonomic design fits comfortably in either hand while the low friction, non-stick PTFE sole allows for easy and swift movement. Additionally, the USB receiver fits into the mouse battery compartment for easy storage when not in use. Also, it promises 4 months of battery life with this new energy efficient technology!

VAIO VGP-BMS15 is a step up if we can say so from its previous brother VGP-BMS10. It’s a bluetooth mouse featuring an interchangeable form-fitting cover that adds stylish good looks. Equipped with laser technology, you can use this 800-dpi laser mouse on virtually any surface, while the low-friction, non-stick PTFT sole reduces hand strain.

A sliding, interchangeable aluminum cover turns this mouse on and off while also protecting the scroll wheel and buttons from accidental scratches.

You can also customize this mouse by selecting from an additional 8 unique colored sliding covers (sold separately).

Mice will be available at Sonystyle.com pretty soon.

Interview With Stan Glasgow, COO/President Of Sony Electronics USA

Merely two hours after I got off a plane and arrived at CES 2010, I sat down in a private meeting room with Stan Glasgow, COO/President of Sony Electronics USA. The interview took place about a hour before the CES 2010 press conference. It was the first time I’d ever interviewed someone on this level, and while mainstream press enjoy such exclusives, these types of interactions are still relatively new for bloggers. It didn’t take long for Stan’s warm demeanor, infectious smile and cool personality to make things comfortable and soon enough we were laughing together during some of his answers – it had turned from an interview into a simple conversation. It became quickly apparent to me how this is one of the best businessmen and speakers I’d ever encountered, and why he is perfect for the title he currently holds. Read on and you’ll learn some interesting things about Stan’s path to his current position, his daily routine, predictions for 2010, his favorite Sony product, how the BRAVIA Internet Video Link service is coming to the PS3, and no new OLED in 2010.

SI: Why don’t you tell us how you got started at Sony, and eventually became the Chief Operating Officer and President today?

Stan: I had built a company, Capetronic Computer Products Holdings Ltd., a global display manufacturing company primarily centered in Asia with factories in Taiwan, China, Thailand, and in California. I started that company in the beginning of computers with the original Apple Macintosh, the original PS1, and worked with Steve Jobs, Rod Canion and other beginning people (in computing). I helped design and and build power supplies, deflection technology, and other products for them. Eventually I took Capetronic public when it was close to a billion dollars.

I had worked with Capetronic for close to 20 years, and was 46 at the time; I hadn’t spent much time with my family. I said, “Now is the time to truly retire.”

I got bored in about three months – the retirement lasted about two and a half years. I wasn’t good at retirement. I started doing some consulting work with several Asian companies, and said to myself, “At this point in my life, I am not motivated by money anymore, but I am motivated to work with great people, and to make a significant contribution that would excite me personally.”

With this in mind, I thought about all of the companies I had worked with in my career, and Sony came to the top of my list since they have great people. I had the fortune of having meetings with Akio Morita and other people on that level over the years. I called up people I knew inside Sony, and asked “Can I help you guys? Consulting? Anything?”

So they gave me a consulting deal in display marketing, and I did that for about six months and after that they wanted me to formally join, but I wasn’t sure if I wanted to work again. I said, “Let me think about it,” and we negotiated for several months. The salary they offered was about a tenth of what I used to make. It wasn’t a money thing – so we negotiated a little more and I finally joined Sony and took over as VP of Display Marketing in June 2001; it was in the transition phase between CRT and LCD. I was very happy doing that.

I did that for about a year – meanwhile, Hideki (Dick) Komiyama (seen above accepting the Best Mobile Handset Award at the 2008 Global Mobile Awards) came over from Japan to take over the President and COO role at Sony Electronics USA. Dick and I worked together at my prior company; I bought products from Sony, and negotiated some deals with them. He took a look at me and I took a look at him, and it was like old friends of course.

He said, “What are you doing for the company?”

I said, “I am running display marketing for you.”

He responded, “That’s ALL your doing at this company?”

I said, “I don’t need a senior position anymore in my life.”

The next thing I knew I was SVP of Information Technology Division, running VAIO and several other products at the time. Less than a year after that, the move took place from Park Ridge, NJ to San Diego, CA and Dick asked me to take over consumer sales. It was typical – I get a call on a Friday, and on Monday I take over the new job. I got a call from Dick again on a Friday in 2006 and said he was, “leaving back to Japan and take another position, and everyone wants you to take over.”

I said to him, “Dick, I don’t really know this time if I really want that in my life right now.”

He said, “Just do it and help us out.” So I did, and that’s how it happened.

What is the average day for you like at Sony, from start to finish? I understand it varies greatly, but if you can, something detailed for our readers.

Every day is very different. I have a program – every night, I plan out what I want to accomplish the next day – it takes me ten minutes, and is not a huge exercise – I know the tasks, certain e-mails I haven’t responded to, or projects I need to check on and follow-up. I build all of that into it, and then I get interrupted constantly; emergencies, phone calls, and whatever else goes on – Sir Howard will call..

The day usually starts very early, I get up at five and take a walk; I used to run most of my life, but at my age I don’t run anymore – the knees don’t hold up to well, so I walk for about 45 minutes to a hour. At 6 o clock, I get ready, and I’m in the office from 7:00 to 7:15. I start my day – I originally try to get through e-mails very quickly (several hundred per day). Joan, my main assistant helps me as well as Debbie in Park Ridge, who starts earlier. They sort out the junk, and things they can take care of. I dig into my e-mails, and get that going – I speak to the East Coast initially, because no one is in our office that early. And then the office starts coming in at 8:30 to 9:00, people start rolling in.

Generally, meetings are heavily booked; 50% of my schedule is already in meetings. Some of that is due to SOX, and the new rules we have where I have to be involved on at least a monthly basis, in all major activities of the company. It has to be formal and documented and in meetings – every step of the way. I get the complaints about so many meetings, but a large portion of them today are not done because we want to do them, or because we think they’re 100% necessary..they’re done because there is compliance issues now. We’re going to be changing accounting systems in the future to a new worldwide system, rather than the US system we have today. That will also make us do some further changes. I think they’ll be better though – those changes.

So the day is interesting – it usually ends somewhere between 6 and 8 PM, half the nights I probably have dinner with somebody, such as guests in town, or some customers, or something. Then the phone calls from Japan will start – because they’re waking up. So that’s a typical kind of day.

How often do you travel to Japan for Sony in an average year? Tell us about your most recent trip there.

Because of the economic meltdown, it was more over the last year. About a year and a half ago they made me group executive of the Sony Corporation. That gets me involved in a little more activity in Japan than I was previously. I probably go about 6-7 times a year, for about a week to ten days. Maximum is two weeks. Usually in a week I can get everything accomplished.

Tell us about your most recent meeting with Sir Howard Stringer, or the Sony Board of Directors in Japan.

Let me tell you a funny thing that just happened – we had CES all programmed for this press conference, and there’s always timing issues of people, etc. We have Taylor Swift performing – she’s on a deadline because she has to get to LA tonight for the People’s Choice Awards. She was sorta at the end of the program, but the program was running long and we were trying to figure it out, so we had to turn the whole program on its ears. Sir Howard was working on it out there, and we ended up changing everything instantly – they’re all rewriting it right now. Poor Dave (Migdal, SVP of Corporate Communications), he’s going crazy.

Howard is very engaging, decisive – he really understands the world of entertainment, PR, and communications better than anybody I’ve ever seen or worked with in my life. It’s very cool. The interactions with the Senior Japanese Executives – they’re good. These are a whole different group than we’ve ever had before, they’re younger, they’re a lot more aggressive. Good backgrounds – it’s much more fun now than it was, quite honestly. They’re willing to try new things, and really be open to ideas. It’s a lot of fun.

The other thing I do that’s really interesting is we have an advisory council, where we look at the future of Sony. For some reason they’ve asked me to be a part of that, I don’t know why I was selected – I don’t ask questions anymore. I go to the meeting, and there’s some interesting people – Louis Gerstner (the Ex-CEO of IBM), Nobuyuki Idei (the past chairman of Sony), past chairman of IKEA, Peter Peterson and some of the outside directors of the board are on this advisory board – we look at future business opportunities, what major things we could do, we have people come in and present to us, and it’s fun being a part of that.

In November 2009, Sony held an investors/analyst meeting in Japan that outlined a new Sony Online Service, where any Internet connected Sony product could access a vast library of applications, music/video content, services and the ability to buy products. Sony labeled this as a new business model, and said that it would create TV’s that would “evolve even after point of sale.” Can you please tell us your thoughts on this evolution, and what your impressions were of it so far?

I think we’re making good progress – to date, I believe we have 33 million users of the Playstation Network. We’re beginning to port that network to other Sony products. We’re doing BRAVIA Internet Video Link – which is more of a streaming service than a downloading service. We’ve got that growing at a fantastic rate in our televisions right now, we added it to Blu-ray players, and we’re adding it to the PS3. We have two different delivery systems of content now ongoing. I think consumers will make the choice what’s easier for them, and then we have to also understand the business models of each of them and decided which is better for the company also. That is ongoing and going very well.

What does make.believe mean to you?

To me, it has a couple of meanings – the main meaning is that we have not had a worldwide project, a worldwide branding effort inside Sony in probably decades. Every region does its own advertising promotion, we’ve had a few things certain regions have done, other regions have not done. It was time to unite the company, from a branding perspective. Make.believe is an interesting way to do it because it gives our engineers the ability to look at creating consumer experiences that are very unique. It gives us the ability to rally our people around something new, a tag line that’s simple, yet very inspiring. The more we can personalize that for consumers in addition to our own people, I see that being a huge win for Sony around the world.

It’s got multifacets that people inside the company to rally together, getting our technical community a little more active – they’re a good community, and I’m not putting them down, but activating them because that’s a core resource of Sony.

What are your major consumer electronic predictions for the second half of 2010?

I think the adoption of 3D may be a surprise in the second half. I think the excitement of Avatar, it’s success, and the 13 other 3D films slated over the balance of the year. I believe that 3D is going to take off possibly more quickly than we’re all thinking. That could be a surprise. I think a product like Dash could be a surprise product. The Reader and our strategy of being totally open, and not having a proprietary type of software system and the fact that we’ve got a broad line moving forward positively being strong in the second half. I believe Blu-ray, now that it’s got a 3D spec, now that the prices have calmed down, I see that potentially surprising us in the second half. I like some of our digital imaging projects, I like Transfer Jet technology, I like being able to proximity – just by putting two cameras together and move pictures from one to another. And eventually move that technology to Televisions, VAIO’s, and other products.

There could be a hope that the US economy is a little better than we think in the second half.

How many 3D channels do you predict there will be by the end of 2010?

I’m aware of one network slated for 2011, one slated for 2010 – this is not easy stuff. This is complex, we don’t have it all figured out yet. I think ESPN’s going to be a pioneer in the world of sports in figuring out camera placement and what to do there. I think it’s going to take some time. I don’t think we’re going to have a lot of broadcasting of 3D in 2010; I think it will start heavily in 2011. We’ll have some that begins, but I don’t think it’s going to be pervasive.

The theatrical side is moving well, but now we’re working on the TV side of this, broadcasting, and the personalized content, getting camcorders that work in 3D, getting digital still cameras that can take a 3D picture. There’s a lot of work to be done there.

What is your favorite Sony product of all time (perhaps one you used when you were younger)?

I would have to say only because of my interest and engineering background in TV, I think the 55″ BRAVIA XBR8 that we introduced about 18-24 months ago was the best LCD TV in the world at that point, and remains the best LCD TV in the world. We did a very special type of back-lighting technology in that product that was super expensive – it was Triluminos, 3 color back-lights, directly into the back of the screen’s back-lighting. A lot of the LED back-lighting today, nearly all of it is Edge-lit, so you’re using LED’s, but you’re firing across the back of the screen and you’ve got some uniformity issues, hot spots, and cold spots. That 55″ XBR8 sits in my main family room, it’s the TV I watch most of the time, and I still gawk at how good that picture is. It was a strong seller; we’re running out of it right now, and we didn’t anticipate the final demand as well as should have because it’s a really expensive product.

Sony is releasing several 3D capable televisions featuring a new Monolithic design – what would you say to the consumer who is skeptical about this new line of 3D display products?

We’re offering consumers an option, I’m not sure how companies many are doing what we’re doing – we’re fully integrating 3D TV’s to 60″ that we’ll sell. We’re also selling a line of 3D capable TV’s, with basically no increase in price. You can add the emitter later on, and the glasses later on. So we give the consumer the option of buying a capable set that they can then make the investment later on to bring it up to full 3D.

Many television manufacturers added support for SkypeHD, and Toshiba promised some sort of video communication for its TV’s. Can we expect Sony to offer this capability as a BRAVIA add-on in 2010?

No comment.

Can we expect to see 3D Cameras (point and shoot or DSLR) from Sony in 2010?

I can’t answer that. You can see them, but when, I don’t know.

Can we expect any new OLED televisions from Sony in 2010?

We’re working on all sorts of prototypes, but I don’t see production of product in 2010. There’s a wonderful 3D OLED prototype here at CES; that’s the real way to do 3D and TV – because you’ve got direct transmission, rather than back lighting and all the other reflective ways of doing it. But getting it to be commercially reasonable in price, we’ve got a long way to go. That’s the whole problem in OLED, great technology, great feature set, but it’s really hard to get the costs down. Smaller form-factors are easy to do.

Thanks to COO/President Stan Glasgow for sitting down with us and entertaining our questions, and a special thanks to the Sony Corporate Communications team.

Hands-on With the Sony Ericsson XPERIA X10

Honestly, one of my absolute favorite products for Sony at CES 2010 was the Sony Ericsson XPERIA X10. It’s a powerful device with a 1GHz Qualcomm Snapdragon QSD8250 processor, complete with a 4 inch capacitive touch display, 8.1 megapixel camera with LED flash and 8GB included MicroSD removable storage. However, the thing that truly stands out to me with the phone is display. It’s the type you just can’t stop looking at because it’s so lush and at four inches you can see so much. The who experience is pretty fluid 95% of the time, with occasional jitters here and there. Still, very impressive for an Android 1.6 build. We hope that it has an upgrade path to 2.1 sooner than later.

Regardless, there is no doubt in my mind that if you pulled this thing out in public it would get some attention. People were all over it at CES.

Here is a little extra review video showing off a little bit of Time Scape, Media Scape, and the dialing interface. We also briefly compare it to the iPhone 3G:

I have to reiterate the phone felt very natural in my hand, and even holding it up to my head wasn’t absurd. It’s really not that larger than an iPhone, but somehow has a larger screen and looks just bloody futuristic. I’ve owned an iPhone for quite a long time and I can honestly say this is the first device that makes me want to try something different. Designs like these totally blow away what Apple is doing right now. And Sony Ericsson is not the only person doing that now. I think a lot of the CE manufacturers are going to hurt Apple in 2010 because they are using advanced functionality such we found in the XPERIA X10, as it has Android, such a striking appearance, and embraces open standards (MicroSD, Mini USB, removable battery). Sony Ericsson could potentially ignite a turnaround if they continue to offer devices of this caliber. It’s just simply gorgeous.

I have a hard time believing many of you will resist this, if you have the opportunity to get it. Don’t mind the cord/attachment to the back of the phone in the pics, it was part of the booth.

Pictorial/Video: Scenes From Sony’s Booth At CES 2010

Sony’s presence at CES 2010 was quite memorable and they demonstrated a wide variety of new strategies for their product lines. Stan and I had a really good time covering some of the products, meeting with old Sony friends and meeting new ones. I cannot express to you enough how well we were treated by Sony, and I hope that through this pictorial and video you will feel like you were right there with us. I do want to express that these pictures and the video do not do the entire booth justice, as it was simply massive and had many more products than what you see here. Nonetheless, I still think you’ll enjoy some of the extra pictures that we couldn’t really fit in with any other entries.

And don’t worry, we still have a lot more to post. Here’s a video showing off Sony’s booth a little more:

I thought it was really neat how Sony had these looming displays of their latest 2010 Television line overlooking the entire booth.

Sony also had an interactive EyePet display, where one could sit down with a Playstation rep and learn about the augmented reality experience. The game should be coming to the USA very soon, which is long overdue as it has been available elsewhere (such as the UK, Asia Pacific) for a little while now.

Here’s the Alpha area, where two specialists helped visitors with their queries. They didn’t have the A450 on display and said that it would most likely never come to the USA.

A general area nearby -

I couldn’t resist..

Sony also had some props from District 9 in a glass case, such as this enormous gun and one of the alien hands and canister that started the whole mess in the colony.

Here is the NX series BRAVIA that sat in front of a couch – they had three separate couches with configurations like this in front of them. Sometimes you could catch people sleeping on the couch at various times, or simply taking a break from the stresses of a convention.

Here is the inside of a Ford Taurus SHO that had special Sony custom lettering and one of their latest head units.

This is the exploded view of a DSC-HX5V – I love it when Sony Japan puts something like this together for conventions. I’d love watch the whole process sometime.

This is the exploded view of the latest Wide Angle G Lens found in many 2010 Sony Camcorders.

This is a luggage tag being made for myself by a machine they had near some VAIO’s. It was pretty random, but attracted attention and was thoughtful. On the other side it mentioned VAIO, CES 2010 and Sony.

I just love everything about Hot Shots and had to take this picture, plus, the PSP Go won an Innovations award (amongst many other Sony products as well).

Stan had no problem working the desk. One of the most amusing pictures I’ve ever taken.

An outtake from the video above – there were many outtakes.

Sony’s Social Media Evangelist Sukhjit Ghag and I right before I left the show floor for good.

The Final Version of Sony’s Active Shutter 3D Glasses

We believe that Sony showed off their final version of the wraparound style Active Shutter 3D glasses at CES 2010 in black, pink and teal colors – they should be available for consumers to purchase in mid-2010. I believe that the this is the final version of the glasses because they will be offering the 3D capable BRAVIA LX900 series TV’s to consumers in about 3-5 months and it would be pretty absurd to do a total redesign at this point. Plus the LX900′s I saw on the show floor had these exact glasses. I asked high level Sony representatives to offer any pricing information and other details on how much seperate Active Shutter 3D glasses and emitters would cost but they were not able to comment. I honestly believe that it will cost quite a bit of money – it wouldn’t be totally unreasonable to assume that the glasses alone could cost $200-$400 each – or more. Before you balk at the price, you must understand that is very low pricing for this technology and adoption will only drive the price down further.

Here is a video by Sony Corporate:

My apologies for the glass reflection in some of the pictures.