Sony will begin formulating a plan to restructure their dwindling television market, according to a report from Reuters. The Japanese multinational conglomerate has a long history with producing televisions but has fallen on hard times over the past decade.
The report claims that Sony hasn’t been profitable in the television market in nearly eight years, despite an annual sales forecast of 22 million sets. While this figure may seem high, it’s five million less than Sony initially forecasted earlier this year. “Sony will review everything from development and production to sales in its TV division,” a Sony spokeswoman said.
Sony entered the television market in 1960 with a black and white model. It wasn’t until the announcement of the Trinitron brand that the company found heavy success. Sony introduced the Trinitron brand name for its line of cathode ray tube televisions in 1968 which received praise for its bright images. The company remained a top player in the television market until they were surpassed by the competition with plasma and LCD designs.
Production of the Trinitron brand ceased in 2008 and Sony introduced a line of flat-panel LCD televisions under the WEGA brand until 2005 when they were rebranded as BRAVIA.
In addition to their television woes, Sony has faced adversity in other aspects of their business as well. The March 11 earthquake, ranked as the 4th most powerful quake by magnitude on record, and subsequent tsunami devastated Japan and shut down six of Sony’s manufacturing plants.
The following month, Sony’s online PlayStation Network was hacked and data from an estimated 77 million accounts was compromised. The service remained offline for over three weeks.
Stock prices have stumbled sharply as a result of these misfortunes.