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As a few people already said, one of Sony's issues was that they ran their business like an empire - individuals had their fiefdoms with only a small amount of oversight, and hoarded what they learned rather than sharing it with the rest of the organization. But another problem was that Sony never adapted their business generally as software became as important, if not more important, than hardware. The one thing that has been consistent with Sony products over the last few years is good hardware married to mediocre software.
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