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Sony

Japanese multinational corporation

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Sony headquaters in 2023
Akonnchiroll · CC BY-SA 4.0

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Through Multinational corporation, World War II and Brand

Sony was founded in 1946 as Tokyo Tsushin Kogyo K.K. by Masaru Ibuka and Akio Morita. In 1958, the company adopted the name Sony Corporation. Originally an electronics company, Sony gained international recognition through products such as the TR-55 transistor radio and the CV-2000 home video tape recorder. The company subsequently became one of Japan's most prominent consumer-electronics manufacturers, with landmark products including the Trinitron color television and the Walkman and Discman portable audio players, while also played a major role in the development and commercialization of the CD, DVD and Blu-ray. Sony's flagship BRAVIA television lineup consistently earns industry 'King of TV' accolades for picture quality and color accuracy. Under its CineAlta brand, Sony is the largest manufacturer of professional video cameras for major feature film productions, while its Sony α series makes the company the second-largest camera manufacturer globally, behind Canon.

Expanding beyond electronics, Sony acquired CBS Records in 1988 and Columbia Pictures Entertainment in 1989, marking major steps into the music and film industries, which established the company as one of the "Big Three" major record labels and one of the "Big Five" major Hollywood film studios. In 1994, the company entered the home video game console market with the launch of the PlayStation, establishing a core business that has sold over 650 million game consoles worldwide. Since 2021, Sony has operated Crunchyroll, the world's largest anime streaming platform. Sony is a global leader in image sensors, which are used in smartphones, cameras, automobiles, and other electronic devices. Its semiconductor business has become an important component of the group's operations, particularly through Sony Semiconductor Solutions. Sony also expanded into financial services in Japan, establishing its financial services business in 2001.

In 2021, Sony adopted the name Sony Group Corporation as part of a transition to a holding-company structure, while its electronics business continued under the name Sony Corporation. Sony is publicly traded on the Tokyo Stock Exchange (a component of the Nikkei 225 and TOPIX Core30 indices) and also maintains American depositary receipts on the New York Stock Exchange, where it has been listed since 1961. For the 2025 fiscal year, Sony Group generated roughly ¥12.48 trillion JPY (approximately $83.4 billion USD) in total revenue. The largest share came from the Game & Network Services division, which brought in around ¥4.69 trillion JPY (approximately $31 billion USD) alone.

History

Early years and founding

Sony's story began in the wake of World War II in 1946, when Masaru Ibuka, a former engineer who had served on the japanese Imperial Navy's Wartime Research Committee, founded the Tokyo Tsushin Kenkyujo (Tokyo Telecommunications Research Institute), an electronics workshop in a department store building in the Nihonbashi area of Tokyo, where he repaired and modified small radios. Later, the fellow engineer Akio Morita, who had worked with Ibuka during the war but had lost contact with him, learned about his business through an article in the Asahi Shimbun. After reuniting, the two founded Tokyo Tsushin Kogyo K.K. (Tokyo Telecommunications Engineering Corporation). In its early years, TTK had capital of ¥190,000, with financial support from Morita's family. Not long afterward, the company launched the Type-G, Japan's first tape recorder.

The Sony brand and name change

Tokyo Tsushin Kogyo founders Morita and Ibuka realized that to achieve success and grow, their business had to expand to the global market, which required labeling their products with a short and easy brand name. While looking for a romanized name, they at first strongly considered using their initials, TTK. The primary reason they did not was that the railway company Tokyo Kyuko was known as TTK. The company occasionally used the syllabic acronym "Totsuko" in Japan, but during his visit to the United States, Morita discovered that Americans had trouble pronouncing that name. Another early name that was tried out for a while was "Tokyo Teletech" until Akio Morita discovered that there was an American company already using Teletech as a brand name.

The name "Sony" was chosen for the brand as a mix of two words: one was the Latin word "sonus", which is the root of sonic and sound, and the other was "sonny", a common slang term used in 1950s America to call a young boy. In 1950s Japan, "sonny boys" were a loan word in Japanese, which connoted smart and presentable young men, which Akio Morita and Masaru Ibuka considered themselves to be.

In 1955, TTK launched its first product under the "Sony" brand, the TR-55 transistor radio. Later, in 1958, TTK oficcially chnaged its corporate name to Sony K.K (Sony Corporation).

At the time of the change, it was unusual for a Japanese company to use Roman letters to spell its name instead of writing it in kanji. The move was not without opposition: TTK's principal bank at the time, Mitsui, had strong feelings about the name. They pushed for a name such as Sony Electronic Industries, or Sony Teletech. Akio Morita was firm, however, as he did not want the company name tied to any particular industry. Eventually, both Ibuka and the chairman of Mitsui Bank gave their approval.

Globalization

1950s–2000s

According to Schiffer, Sony's TR-63 radio "cracked open the U.S. market and launched the new industry of consumer microelectronics." By the mid-1950s, American teens had begun buying portable transistor radios in huge numbers, helping to propel the fledgling industry from an estimated 100,000 units in 1955 to 5 million units by the end of 1968.

Sony co-founder Akio Morita founded Sony Corporation of America in 1960. In the process, he was struck by the mobility of employees between American companies, which was unheard of in Japan at that time. When he returned to Japan, he encouraged experienced, middle-aged employees of other companies to consider joining Sony. The company filled many positions in this manner, and inspired other Japanese companies to do the same. Moreover, Sony played a major role in the development of Japan as a powerful exporter during the 1960s, 1970s and 1980s, supplying the U.S. Military with bomb parts used in the Vietnam War. It also helped to significantly improve American perceptions of "made in Japan" products. Known for its production quality, Sony was able to charge above-market prices for its consumer electronics and resisted lowering prices.

In 1971, Masaru Ibuka handed the position of president over to his co-founder Akio Morita. Sony began a life insurance company in 1979, one of its many peripheral businesses. Amid a global recession in the early 1980s, electronics sales dropped and the company was forced to cut prices. Sony's profits fell sharply. "It's over for Sony", one analyst concluded. "The company's best days are behind it."

Around that time, Norio Ohga took up the role of president. He encouraged the development of the compact disc (CD) in the 1970s and 1980s, and of the PlayStation in the early 1990s. Ohga went on to purchase CBS Records in 1988 and Columbia Pictures in 1989, greatly expanding Sony's media presence. Ohga would succeed Morita as chief executive officer in 1989.

Under the vision of co-founder Akio Morita and his successors, the company had aggressively expanded into new businesses. Part of its motivation for doing so was the pursuit of "convergence", linking film, music and digital electronics via the Internet. This expansion proved unrewarding and unprofitable, threatening Sony's ability to charge a premium on its products as well as its brand name. In 2005, Howard Stringer replaced Nobuyuki Idei as chief executive officer, marking the first time that a foreigner had run a major Japanese electronics firm. Stringer helped to reinvigorate the company's struggling media businesses, encouraging blockbusters such as Spider-Man while cutting 9,000 jobs. He hoped to sell off peripheral business and focus the company again on electronics. Furthermore, he aimed to increase cooperation between business units, which he described as "silos" operating in isolation from one another. In a bid to provide a unified brand for its global operations, Sony introduced a slogan known as "make.believe" in 2009. Despite some successes, the company faced continued struggles in the mid- to late-2000s.

2010s

In 2012, Kazuo Hirai was promoted to president and CEO, replacing Stringer. Shortly thereafter, Hirai outlined his company-wide initiative, named "One Sony" to revive Sony from years of financial losses and bureaucratic management structure, which proved difficult for former CEO Stringer to accomplish, partly due to differences in business culture and native languages between Stringer and some of Sony's Japanese divisions and subsidiaries. Hirai outlined three major areas of focus for Sony's electronics business, which include imaging technology, gaming and mobile technology, as well as a focus on reducing the major losses from the television business.

In February 2014, Sony announced the sale of its Vaio PC division to a new corporation owned by investment fund Japan Industrial Partners and spinning its TV division into its own corporation as to make it more nimble to turn the unit around from past losses totaling $7.8 billion over a decade. Later that month, it announced that it would be closing 20 stores. In April, the company announced that it would be selling 9.5 million shares in Square Enix (roughly 8.2 percent of the game company's total shares) in a deal worth approximately $48 million. In May 2014 the company announced it was forming two joint ventures with Shanghai Oriental Pearl Group to manufacture and market Sony's PlayStation game consoles and associated software in China. The same year, it closed 20 US retail locations.

In late 2014, Sony Pictures became the target of a hack attack from a clandestine group called Guardians of Peace, weeks before releasing the anti-North Korean comedy film The Interview.

In 2015, Sony purchased Toshiba's image sensor business.

In 2017, Sony sold its lithium-ion battery business to Murata Manufacturing. That same year, the company closed its iconic Sony Building in Tokyo's Ginza district to begin a multi-phase site redevelopment.

In 2019, Sony merged its mobile, TV and camera businesses.

2020s

On 1 April 2020, Sony Electronics Corporation was established as an intermediate holding company to own and oversee its electronics and IT solutions businesses.

On 19 May 2020, the company announced that it would change its name to Sony Group Corporation as of 1 April 2021. Subsequently, Sony Electronics Corporation would be renamed to Sony Corporation. On the same day the company announced that it would turn Sony Financial Holdings (currently Sony Financial Group), of which Sony already owns 65.06% of shares, to a wholly owned subsidiary through a takeover bid.

On 1 April 2021, Sony Corporation was renamed Sony Group Corporation. On the same day, Sony Mobile Communications Inc. absorbed Sony Electronics Corporation, Sony Imaging Products & Solutions Inc., and Sony Home Entertainment & Sound Products Inc. and changed its trade name to Sony Corporation.

In April 2021, PlayStation Studios closed its Japan Studio, absorbing its remaining development teams and resources into Team Asobi.

In 2024, Sony closed several of its PlayStation Studios developers, shutting down London Studio in May as part of broader company-wide layoffs, followed by the closures of mobile developer Neon Koi and Firewalk Studios in October.

In January 2025, Sony celebrated the grand opening of the newly constructed Ginza Sony Park in Tokyo's Ginza district, replacing the former historic Sony Building with an open urban park structure.

In February 2026, Sony announced the closure of PlayStation Studios subsidiary Bluepoint Games and in March shut down Dark Outlaw Games.

In March 2026, Sony and Chinese electronics manufacturer TCL Electronics signed agreements to form a strategic joint venture for the home entertainment business, covering consumer televisions, professional displays, and home audio systems. Under this agreement, Chinese firm TCL holds a 51% controlling stake to handle global development, manufacturing, and distribution, while Sony retains 49% and provides brand licensing and core technologies.

In July 2026, Sony sparked widespread public backlash and community protests after announcing plans to phase out physical media disc production for PlayStation consoles starting from January 2028, fueling intense debates over game preservation and digital ownership rights.

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Source and licence. Adapted from the Wikipedia article “Sony” (this version, 2026-10-02) by its contributors, shared under CC BY-SA 4.0. Lablypedia has left out its tables, references and most pictures, and linked it to other Lablypedia articles.