SONY just got kicked in the Ranchos Huevos... (1 Viewer)

[Mark_TS]

Post Edited By Administrator, Please, don't post copyrighted articles in their entirety when a link would surfice. Thank you.

UK Court throws out '04 approval by regulators, ruling that a monopoly investigation fell short.

By Charles Duhigg, LA Times Staff Writer
July 14, 2006

In an unexpected move that rocked the global music industry, one of Europe's highest courts Thursday threw out regulators' approval of the 2004 merger that created Sony BMG Music Entertainment, the second-largest music company in the world.

The European Union's Court of First Instance ruled that regulators had made a "manifest error" when they approved uniting the music units of Japan's Sony Corp. and Germany's Bertelsmann. The court found that regulators did not sufficiently investigate whether the combination would create a monopoly.

The decision, which came in response to a challenge filed on behalf of 2,500 independent music labels, caught executives at Sony, Bertelsmann and Sony BMG by surprise. Sources at the companies said they would re-submit the deal for approval within a week. A decision could take as long as five months.

If that petition fails, executives may be forced to undo the partnership that collected $4.2 billion in revenue last year and was responsible for more than 25% of U.S. album sales. The Sony BMG combination reduced the world's major record companies to four and brought such artists as Aerosmith, Barbra Streisand and Elvis Presley under one roof.

Whatever the outcome, Thursday's decision put an immediate chill on negotiations between EMI Group and Warner Music Group — the world's third- and fourth-largest music companies, respectively. Insiders at both companies said further talks about combining them were unlikely until the Sony BMG issue was resolved.

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and from Wednesdays GIZMODO.com:

PS cell yeilds 'in the toilet'

In plain English, this means the PS3 Cell processor is so big and complicated, they're having a hard time making enough to satisfy the demand. An IBM Semiconductor VP says they're "lucky to get 10 or 20 percent" out of a chip like the Cell. The other 80-90 percent aren't fit to be used in PS3s, meaning they either get used in another application or thrown away if they can't be.

What this means to you is that the PS3 is probably going to be available in very limited quantities, at least until they can get the yields up. Also, Sony's going to be bleeding money on these chips, since they need to make so many (5 to 1 ratio?) to get one good enough to use in a PS3. Better get your pre-orders in now. – Jason Chen

Wonder how this will effect BD?

 

[Jerome Grate]

Talking about bad timing for Sony. Sony has issues with their PS3 and BD release, picture quality issues based on initial reviews of the discs released so far, now their merger with BMG is out the window for now, sheesh. The only thing I see how it will effect BD is the battle on two fronts other than that it probably won't effect BD that much.

 

[Garrett Lundy]

Wouldn't such a ruling only affect Sony/BMG UK? or will it also have an effect on USA, Japan, France, etc etc?

 

[Jordan_E]

What goes around comes around, Sony.

 

[Jerome Grate]

Yeah, especially since they laid off 2000 employees when they merged.

 

[Cees Alons]

Bertelsmann was a German company. They had to ask permission for the merger from a European entity, who granted it. The court now decided that the permission was granted on improper grounds and has "destroyed" the decision.

They cannot merge anywhere now, until they get a new and legal permission.


Cees

 

[Jesse Skeen]

AND killed off BMG's support of DVD-Audio, and most of their own support of SACD!

 

[Peter Overduin]

Bertelsmann, BMG, Beta, Blu ray...I see a pattern here...I wonder if Sony does. Sounds like a 'B' operation to me!

They've been bleeding huge money in the last few years, and still dont seem to get it. But what the hell do I know...I'm just a stupid consumer.

 

[Kelly Grannell]

now it's time for me to vanguish my hope to get my hands on PS3 for BD playback capability.

good picture quality expectation from current BD: vanguished
50 Gb BD: vanguished (for the time being)
PS 3 as a BD player: vanguished

time to move over to HD DVD. But that's a different evil altogether. Every single one of my Toshiba players failed / died within the first 8 months of usage. From early generation DVD player, to their top of the line portable DVD player, to their DVD HDD recorder. 7 players and recorders in 6 years. Enough is enough with Toshiba.

I guess for the time being I can only dream about having HD anything.

 

[Curt_B]

Yes, SONY/BMG is the music arm of SONY worldwide.

But fighting the ruling would drain money and resources from the company itself, which isnt exactly healthy to begin with.

If they were forced to break apart-the costs would be staggering-and affect ALL areas of the company, up to the top, I would assume; You would see more layoffs and all around dept budget cuts.
Would SONY survive? Who can say.

And if the PSP3 chip problem bleeds them further, or delays any shipping quantities of the unit before X-mas-the X-box may well get a solid footing, and lead, a further blow.

Someone noted that a potential required internet connection could render your player useless, if SONYs servers caught on to a borrowed, pirated or backed-up disc.
Someone else claimed 'baloney'
Both of the following are in the spec.
Like the flagging issue with HDMI- SONY may wait to get a foothold and for the dust to clear-they could then very well implement these 2 brick walls.

Finally, poor reviews of BR discs, and promised vaporware, with expensive players do not bode well for SONY.
If the BR2 was the winner, and here NOW- with no HD on the block, maybe SONY/BR could pull through.

But right now I would not put all my eggs in a BR basket, if any.

SONY, is now at a crucial juncture, and seems to be drifting in the wind-and in danger of hitting rocks.

As was noted in the original post (Good catch, btw)
Warner is backing out of a deal with EMI-they must know something.

Back on the fence-or maybe no fence to sit on, if HD come out on top by by delay and default.
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I thought I read that Ron broke down and bought an HD player-good move, if true.
Im sure TOSHIBA will move in on this unexpected break, and also improve their players-they have some breathing room, it looks like.

 

[AaronSCH]

I would check with your exterminator to see if you have any gremlins in your home. My experience with my Toshiba combo TV/DVD player used in the bedroom has been positive and continues to operate perfectly after 4 years. My recent purchase of the Toshiba HD-A1 has been totally positive and it has operated flawlessly since it was hooked up to my Hitachi Projection TV.

 

[Rob_Walton]

I'm assuming the Sony haters in this thread are aware Microsoft is getting flogged with an ongoing EU fine, draining their own resources. Of course both companies are far too large for these issues to hold a significant impact, but for the folks in this thread it would seem to be important...

 

[Manus]

" but for the folks in this thread it would seem to be important... "

Rob,
I dont know if you are a Sony employee or , if so , which department you work in ?And if you do , perhaps you could encourage the relevant senior people over there to ask themselves why it is so and why so many people have come to ABSOLUTELY HATE Sony Corporation ?

What have they done wrong ? Is it the constant 'format wars' ? Is it their nasty 'rootkit' problem or their 'understanding' and use of the term 'hi-rez' audio ? Or their infamous EULA ( End User Licensing Agreement ) and its blatant disregard for their customers and their rights ? Or their launch of their latest new format which was obviously so not ready ? Mpeg2 ? 50gb ? Even Sony fans must be struggling to find something to smile about

At least with Microsoft , you can always turn to Mac.I have just 1 Sony product left in my home , when that dies there will be no more and thats what I tell anyone who asks .

~M~

 

[Jeff(R)]

 

[Manus]

" Actually, it seems that "so many people" have named Sony as the most preferred brand. "

Its all down to interpretation, Jeff , isn't it ? Why are Sony losing so much money ? Why are they having to borrow so much lately ? Why are they having to charge so much for PS3 ?

If you Google 'Sony losses' these are just some of the articles you'll come up with :

http://www.itweb.co.za/sections/fina...l&A=FIN&O=FRGN

http://www.digg.com/tech_news/Sony_Losses_Continue_-_$578M_1Q_Loss

http://www.ehomeupgrade.com/entry/21...he_playstation

You'll notice, too, that the bad news has been reported over an extended period of time so Sony's problems haven't just arisen out of the HD-Dvd/Bluray fiasco.

IMO Sony has become an inefficient , desperate behemoth Corporation stretched tautly to bursting point around the globe. They are inefficient and often illogical at times ( Sony music doesn't want you to record at home / Sony computers have a model that automates making 200 copies )

How the 'great' inventors of Trinitron have gotten themselves into this mess I dont know and frankly in the corporation's current form , I dont care. The use of Mpeg2 and general poor quality of the currently released Bluray discs is quite shameful 'perfect sound(and picture) forever' nonsense and shows the intention to again institutionalise the double/triple dipping concept. The lack of the much-touted 50gb capacity hasnt so far stopped the HD-Dvd side from putting out highly-regarded product.

~M~

 

[Rob_Walton]

Nope, I don't work for Sony, sorry. As to the hatred laid in their direction, that seems to be par for the course for all success stories. Once you become large enough, either as a celeb, musician, or company, the haters will flow in your direction just as surely as the fans. It's only on HT/gaming sites that Sony haters really seem to find a home, while on computing forums such as slashdot you'll find MS getting the brunt of the "fan's" ire.

If it gives these people something to do with their lives which doesn't involve dead bodies buried under their houses then all to the good, but on the other hand it does get a little tiresome to see the same few individuals constantly trying to make mountains out of these inconsequential mole-hills.

 

[Manus]

Its just as tiresome to find the same apologists spending their free time popping up on different threads all over the place trying to defend 'poor little Sony'.
I think this thread is still valid as the original poster was drawing attention to the 'apparent' fact that it seems that Sony keep getting themselves into difficulties.It may take some time before my personal lack of Sony purchases have any impact on the corporation but that is my choice. I also find it significant that all this vitriol doesn't appear to get thrown at other companies like Pioneer,Denon,Toshiba or whoever you care to name to the same extent.
I havent jumped into either HD-Dvd or Bluray yet but I'm continually amazed when I drop by the Forum to keep abreast of developments at the number of people who seem to have adopted sides and loyalties already and will not tolerate any debate. If Bluray wins outright then I will of course join the party with a Bluray player , but I can tell you now that it will not be a Sony player

~M~

 

[Rob_Walton]

I'll be buying a Panasonic personally, unless the Pioneer is really worth the extra moola.

Most of the companies you mention as not getting the same level of vitriol also don't produce the world's most successful games console, which seems to be a lightning rod for a certain type of person. Do Sony get themselves into difficulties? Sure. Do other companies have nearly identical problems (right down to MS rootkit style debacle just recently) ? Yes. Are these issues of any real import to the issue of BD and HD DVD? Not on your nelly. Pointing this out doesn't make anyone an "apologist" for Sony or any other company, and frankly it's embarressing to read words like that used in this context. This isn't a war, it's just a hobby! Damn...