Sony plans new angle of attack on Apple’s market-dominating iPod

“If ever there was a company that could challenge Apple Computer for the dominant position in the still-young digital music space, it should be Sony,” Arik Hesseldahl writes for Forbes. “And yet, it isn’t. Despite the strength of its now decades-old Walkman brand, Sony’s various moves into the digital music player market and online music sales have come in fits and starts with little notable success. Sony’s online music channel, Sony Connect, accounts for only a modest bite of the overall music download market, compared to 70% or more (depending on whom you ask) for Apple’s iTunes Music Store.”

Hesseldahl writes, “But, Sony is mounting a new attack from an unlikely direction: video games. Sony’s forthcoming Playstation Portable (PSP)–a handheld gaming platform–will be primarily a gaming device. But, its use of a new Sony-created storage disc format–the Universal Media Disc, which stores nearly two gigabytes–can’t help but become an easy method for selling music. The plan, says Andrew House, executive vice president of Sony Computer Entertainment America, is to get the device in consumers’ hands primarily as a gaming device and then use it to market music and video.”

Full article here.

37 Comments

  1. IMHO, there is a real paucity of the number of new disc formats that are going to succeed in the future. Remember Divx or the Sony MiniDisc? Even DVD-HD may have troubles finding a foothold in the future.

    If Sony is creating a new disc format just for the Playstation Portable, does this have any chance of actually gaining enough marketshare for retailers to carry it? (My guess: no.)

  2. How does yet another disc format make it easy to sell music? The mini-Disc didn’t do so great here in the US. Neither did DAT (as a consumer audio product).

    The disk isn’t making the case, it’s other devices that could hold music (presumabley downloaded to the device, not another disc format to stick in it) like a cell phone or handheld gaming platform, maybe even a PDA with a small hard drive.

    We’ve learned from Iomega that the discs don’t make the product, it is the ability to add data to it quickly in the format you want that does.

  3. a. It seems to me that their best angle of attack would be waving a white flag.

    b. Why does everyone keep bringing up that just because they had a major impact/hit at one time with the Walkman it means they should be the best source of competition today? Not relevant. The external environment has changed greatly since then.

  4. Another new format from Sony…? They just don’t ever give up, do they?

    Pants — MDN has explained that they’d love to buy their own Xserve but cannot afford to buy any type of server at this time. I bet they would love for you to buy one for them as a holiday gift. Then both you and they will be happy. ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

  5. ahahah here we go guys.. ATRAC3.. the PsP will have it.. and guess what, Apple will be selling 4 Million iPods every Quarter from now on.. and that’s only going to increase..

    The PSP on the other hand.. er.. I believe Sony said they hoped to have 500,000 supplied and sold by March05.. (to Nintendo’s 5 million)

    The only way to sell music with your.. *groan.. Connect Service is if you beat Apple’s numbers.. how…? Hrm.. here’s an idea.. Drop this ATRAC bullshit and work with Apple to put a version of iTunes in the PSP..

    Again… that Golf Course arrogance follows them around..

  6. Apple is Microsoft. The Walrus was Paul. Arms for Oil. Sony is innovative. iPod will run Microsoft Word. iTunes doesn’t have enough songs. The world is rotating too fast. My love handles extend to my back. My forehead is growing. My bank account is shrinking. I have nothing better to do than write meaningless feedback to “news” that does not matter.

  7. removable media has had its day, this has been proved with the iPod. People would much rather have a single device with everything they need on it, insted of a device, a load of discs, something to put the disc in to keep them safe, etc. You get the picture, hard drives are the way to go.

  8. mike
    WIseguy.. Apple was turned down.. SJ tried.

    That’s a rumor not a fact. No one knows for sure what happened behind the scenes between Sony and Apple, if anything.

  9. Over? I don’t see a fat lady yet, nor do I hear any singing.

    ipod is the new guy who is doing pretty good for his looks and potential. been in the mainstream for a few years, but all in all, its still just one product. You either love it or hate it.

    on the other hand, there is the old, experienced player who has been in the mainstream for over a decade, helped start the portable device game, and have many products available. you may hate one product but love the other.

    apple gots to pump out more range of products to get to where sony is. sure they have dominated the portable mp3 player market, but only for so long. more players with potential is coming into the game, its been easy till now with no competition. the road ahead is where the challenge is.

  10. RE: “ipod is the new guy who is doing pretty good for his looks and potential. been in the mainstream for a few years, but all in all, its still just one product. You either love it or hate it.”

    LOL. The only people who “hate” the iPod is Sony & Microsoft.

  11. trippah, it’s not just one product..

    it’s a line of compatible products called a platform

    and Apple has a great piece of software that promotes that platform.. it’s called iTunes.. and it runs on Windows and Mac..

    Sony’s shitty Connect service has achieved zero traction.. Apple’s has a 70% market share…

  12. Absolutely! And if the rumors of the flashpod are true, Apple will probably have a completely dominant product lineup, from $100 to $600 and the software and the store to compete with anyone else for several years.
    Sony is CLUELESS in this area of the market!

  13. iLikes the macs, but I don’t like the iPods.

    They don’t have FM or TV (very useful to me while mobile and following news and sporting events.)
    Recording is limited as well.

    Sony Hi-MD can record mic’d events and auto adjust its levels, quite well. If recording is important, the iPod only just chuffs along while the Hi-MD devices shine.

    Once Sony fixes the MP3 playback issues I’m going to pop for the hi-MD.

    Drawbacks:
    – Sonic Stage software runs only on a PC. (but I have a few computers)
    – The device won’t playback AAC. Some Nokia phones and the new Treo can playback AACs for crying out loud, this would be a big win for Sony to support general AAC.

    I don’t need all my music all the time, but I do want to listen to radio and to record. So the Hi-HD is closer to perfect for me, than the overpriced iPod.

    http://minidisc.org/ for the curious.

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