Sony Online Service to counter iTunes, can be aptly referred to as ‘SOS’

Sony is a little behind in the game when it comes to producing and delivering media content, but it’s making a push to grow that side of its business. After all, products like the PlayStation 3 and the Sony Reader are completely capable of delivering a variety of books, magazines and entertainment. Sony Online Service will be an online store that will help get media out to the masses and it may compete with Apple’s iTunes. The online store will sell music, movies, books and applications much like iTunes does. If Sony intends to start turning out more profits, an online store is definitely a way to go since many consumers prefer the convenience of getting their content on the Internet.

According to BusinessWeek, Sony is still expected to to show a little decline:

The global recession has pummeled Sony’s businesses and left its earnings in a shambles. With consumers cutting back on electronics, Sony says it’s heading for its second straight loss. This fiscal year through March 2010, Sony predicts an operating loss of $674 million, from last year’s $2.6 billion loss. Sales are expected to slide 6%.

Sony’s core electronics business has been its biggest problem. The two worst-performing products: TVs and video games. Reversing the losses of those divisions is crucial because they account for more than a quarter of Sony’s $82 billion in annual revenues. The games division is expected to post its fourth straight operating loss. On Nov. 19, Sony said both the gaming and TV businesses aren’t likely to see profits until next fiscal year. Stringer also pushed back the company’s overall goal for a 5% profit margin until the fiscal year ending March 2013.

via Sony Unveils Its Answer to Apple’s iTunes – BusinessWeek.

I’m a little shocked that the video games division is taking a hit because I’m quite a fan of the PS3. There wasn’t much said about computers and notebooks, but the VAIO line is excellent albeit rather expensive compared to other Windows notebooks. Luckily, Sony has just the man to steer the ship in the right direction, hand plucked from Apple’s management tree, Tim Schaaf. After struggling with resistive and non-compliant engineers, Schaaf was able to restructure management at Sony in a way that will help move the company forward with a shared vision for software development. Will the move toward software and media content help save Sony’s ship?