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The digital technology revolution has brought about the birth of new media and the integration of computers, telecommunications and television. In the age of multimedia it is essential to achieve synergy between hardware and software, and the companies of the Sony Group continue to work toward this end.
Sony applied digital technology to audio products for the first time with the development of the compact disc. Ten years later, it was used again in to develop the MiniDisc, which brought a new personal music medium to the market in 1992. During the ten year period in between, products like the CD-ROM and Video CD were also added to Sony's lineup of multimedia products.
Over the years, the revolution in hardware technology has created many new possibilities for media and content development. With its wealth of experience in the software industry, SME is well positioned to take advantage of new business opportunities. For the entire Sony Group, synergy between hardware and software products is growing as the hardware and content businesses work together to advance each other's technology and future direction.
An example of this synergy can be found in a new venture which emerged in November 1993. Sony Music Entertainment (Japan) Inc. (SMEJ) and Sony Corporation had jointly established Sony Computer Entertainment Inc. (SCE) to engage in the development, marketing and licensing of video game consoles and game titles. Although Sony had previously been involved in business tie-ups with computer game companies, Sony decided that the new company would concentrate on independent software development. To this end, personnel from various sections of the Sony Group, including broadcast products development staff and SMEJ staff involved in software development, were brought together at SCE.
Toshio Ozawa, former chairman of SMEJ, was appointed president of SCE, with Teruhisa Tokunaka of Sony Corporation as vice president. Shigeo Maruyama, a man renowned for discovering and nurturing new artists at EPIC/Sony also joined the new company. Led by Ozawa and his new management team SCE's employees came together from many different backgrounds and began creating a unique corporate culture which incorporated elements from across the Sony Group.
A year after its establishment, SCE successfully combined the hardware expertise of Sony Corporation with the software know-how of SMEJ to develop the 32-bit PlayStation video game system. With its CD-ROM-based software and the processing power of a computer workstation, PlayStation was far more than just a toy.
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A long line of people waiting to see a prototype of the PlayStation at the October 1994 Electronics Show in Japan. |
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In December 1994, PlayStation was launched in Japan. At that time the computer game market was dominated by Nintendo Co., Ltd., and there was no guarantee that a Sony brand product would be able to capture significant market share. Nevertheless, the initial stock of 100,000 units sold out on the first day of business, and the next 6 months recorded accumulated sales of more than 1 million units. Sony's entry into the video game market had been an overwhelming success. Following this initial triumph in Japan, SCE launched the PlayStation in the U.S. and Europe in the autumn of 1995 under the new leadership of Tokunaka. As of May 1996, the accumulated number of PlayStation units sold worldwide had exceeded 5 million forming a true milestone in Sony's sales history. It was the first time that a single model had sold such a large number of units in such a short period of time.
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