Sony is almost becoming a storybook of mistakes and things not to do. It becomes clear now why Apple is so shy to buy companies that it couldn’t enforce Apple culture on. A reputation depends on decisions that everyone makes.

It is curious is it not? Sony had every advantage to secure and protect its systems. So why did it not do this? Perhaps it did. Hackers are some of the most technically brilliant people I have encountered. Not always the most pleasant either. Was this revenge for the Sony root kit problems in the past? Was this revenge for Geohot the hacker that Sony prosecuted? Was this payback for Sony’s involvement in suing LG? Sony has sued so many people it is hard to keep track.

Remember when SCO Unix sued IBM over code and the court found that SCO was guilty and owed money to another vendor? Winning a suit is no guarantee that things are going to go in your favor. Even if they win, in customers minds they have already lost. A company that sues its clients won’t long survive. Look at what is happening to the Movie and Record business. People are not buying music and instead paying artists directly for it. How long before there is a direct model for video games? Probably not long.

I think this is the beginning of the end for Sony. It may take 15-20 years, but Sony has lost its MoJo and once that happens crazy management decisions rearrange the deck chairs until the end. Unfortunately I have seen this before, and we will see it again as companies fail to adapt to a changing enviornment.