PlayStation, Blu-ray, Bravia TV, Walkman, XM4 headphones. If you’ve ever used any or all of these products, you should be pretty familiar with Sony.
From game-changing audio listening devices to ground-breaking gaming consoles, the brand has undoubtedly carved a name for itself in the global tech and gaming industry since its inception in the aftermath of World War II.
But how did a household brand synonymous with innovation and quality become one of the “most hated brands in the world?” Let’s look back at the pivotal moments and possible missteps that contributed to Sony’s rise and fall.
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Is Sony the most hated brand in the World?
Founded in 1946 in Tokyo, Japan, by electronics industrialist Masaru Ibuka, the company now known as Sony has come a long way since its early days of producing electric rice cookers and tape recorders.
Decades since its establishment, Sony has become a household name worldwide. Gen Xers and Millennials grew up listening to mix tapes and CDs on Walkmans and Discmans, while Gen Z and Gen Alpha remain familiar with the brand as they eagerly pounce on the controllers of PS4s and PS5s.
Public awareness of the brand is backed up by 2022 data from Statista, highlighting that nine out of ten respondents in the US are aware of Sony.
Sony brand awareness in the US in 2022 (Source – Statista)
But here’s the catch: as high as Sony’s brand awareness may be, its popularity and usage rates aren’t keeping up. In addition, brand loyalty to Sony was even worse, with only one out of ten respondents claiming they were faithful to the brand.
Falling low on the popularity scale is one thing, but it gets worse. In 2021, Sony came out as the most hated brand on the list, as compiled by the product review website Rave. In fact, it got the highest rate of negative Tweets in ten countries, namely:
- Canada
- Hungary
- Austria
- Greece
- Romania
- Chile
- Argentina
- Puerto Rico
- Ghana
- Kuwait
Most hated brands in every country (Source – Rave via Digg)
Rave based its report on more than one million tweets globally and used negative mentions as a guide.
Though Sony wasn’t the most hated brand in the US (hint: it’s Tesla, which came in second to Sony in worldwide), the Japanese brand didn’t score well across the states either. It was the most hated brand in Texas, Missouri, and North Carolina.
The most hated brand in every state (Source – Rave via Digg)
Events that contributed to Sony’s public backlash
Are you baffled by how Sony became the most hated brand in the world? Let’s examine a few factors that may have played a part.
Security Breaches (2011 and 2014)
In 2011, Sony’s PlayStation Network suffered a massive security breach. As a result, the names, addresses, and other personal data of around 77 million account holders were stolen. The incident caused network downtime and, not surprisingly, outrage among PS users.
Another security breach troubled the company in 2014 when a group called Guardians of Peace cyber-attacked Sony Pictures Entertainment. They stole vast amounts of data, including unreleased films and confidential emails.
Both of these events may have happened a decade ago, but they certainly shook the public’s perception of the brand.
PlayStation 5 Launch Issues (2020)
More recently, Sony suffered a major backlash over what could’ve been a huge brand opportunity during the highly anticipated launch of PlayStation 5.
Users’ excitement over the new console in November 2020 quickly turned into disappointment due to a severe stock shortage. Scalpers were happy to fill in the void, driving PS5 prices to skyrocket to double the price in unofficial marketplaces.
The shortage reportedly stemmed from the global chip shortage that began in 2020, which also affected other industries, from car makers to phone manufacturers.
In an interview with Wired in 2021, Sony Interactive Entertainment president and CEO Jim Ryan apologized and said they were doing what they could to fix the issue.
The stock shortage was finally resolved in January 2023.
Alleged Sexism (2021 and 2022)
Alongside consumer-related issues, Sony also suffered reputational damage centering on its internal operations. In 2021, former IT security analyst Emma Majo filed a gender discrimination lawsuit against PlayStation, citing wrongful termination and a hostile work environment for women. The case was dismissed in 2022.
Later that year, however, eight more women, both former and current employees, supported Majo’s claims, describing forms of sexist behavior, including demeaning comments, unwelcome advances, and challenges in obtaining promotions.
Sony Interactive Entertainment released a statement stating that it takes the allegations seriously, values its female employees, and takes steps to “ensure they have every opportunity to thrive and be heard.”
What can we learn from Sony’s controversial image?
Sony’s journey as a brand offers a wealth of lessons not only for business leaders but also for marketers. For one, cultivating an inclusive and supportive workplace is critical, not only for public image but more so for employee morale.
In addition, the incidents mentioned reiterate the need to inform and support customers in times of crisis, such as data breaches and supply shortages. As much as you would want to placate customers, never promise anything you can’t deliver. There’s no faster way to turn fans into haters than to hype up excitement over your product, only to leave them hanging and frustrated.
References:
- The Most Hated Brand In Every Country, Visualized
- Sony ‘most hated’ brand; INFORM Consumers Act introduced; AB InBev considers beer sale – news digest
- PlayStation Network hackers access data of 77 million users
- How a Chip Shortage Snarled Everything From Phones to Cars
- The PlayStation 5 Is Starting to Look Like the Revolution It Promised
- Sony responds to sexism and misconduct allegations by PlayStation employees