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Gamasutra’s Colin Campbell wrote this excellent article on how the PlayStation Network outage has further devalued the PlayStation brand. Colin is awesome and his article is great, but I don’t think he went far enough. There’s no question that the PSN attack has damaged the PlayStation brand. It’s more than that though. The PSN outage has damaged the (already declining) Sony brand.
Remember when Sony was the premiere name in consumer electronics? There was a long stretch when the consumer electronics market was Sony, followed by everyone else. From televisions to audio components to laptops, Sony products were almost always best in class. A lot has changed since then. The company absolutely bombed in the modern portable audio space (which is funny because it basically created the market with the Walkman). PC manufacturers were able to offer computers that were almost as nice, but much cheaper. The television market got a lot more competitive, with Korean companies like LG and Samsung outdoing Sony in both price and performance.
For two console generations, Sony dominated the field. Its third go-round didn’t go nearly as well, for numerous reasons. Although the PlayStation 3 was starting to pick up steam globally, the PSN outage will definitely impact performance and perception. Rightly or wrongly, people will use the PSN outage to illustrate that Sony has lost its grip on yet another market.
What do you think? Will the damage be confined to to the PlayStation brand or is the Sony brand in jeopardy too? Or is all of this being overblown? Perhaps the PlayStation and Sony brands will be just fine by the end of the year. Kindly share your thoughts on the nebulous value of branding!