How the Tech Parade Passed Sony By
Nice overview of the myriad of problems facing Sony. One of the more interesting aspects of the story is the continuing reliance on large corporations to power the Japanese economy. Unfortunately, according to the Times's reporter, Sony and many other large Japanese companies are simply short on new ideas, while beset on one side by lower-cost manufacturers like Samsung and on the other by innovators like Apple.
Update:
More bad news for Japanese manufacturers
"The demise of Panel Bay [formerly the center of flat-panel manufacturing] is the latest sign of what many Japanese fear is the hollowing out of their heavily industrialized economy, which has been in a gradual but relentless decline since the bursting of its twin real estate and stock bubbles in the early 1990s. The decline is largely a result of growing competition from Asian rivals, an aging work force and merciless gains by the yen. But many officials and business leaders now fear that this trend has accelerated since last year’s nuclear accident in Fukushima, which has raised the prospect of higher energy prices and even power failures."
Why has the Japanese central bank not intervened more directly to weaken the yen? At current exchange rates I can't see how Japan's exporters can hope to compete. Japanese autos are now substantially overpriced here in the US when compared to domestic products and Korean marques like Hyundai. In the past people were willing to pay a premium for the supposed quality advantage Japanese vehicles had versus their competitors, but that advantage has shrunk radically over the past decade. These days I'm much more likely to consider a Ford or a Hyundai than a Toyota or Honda.