Vidgamer's View

Saturday, February 20, 2010

Sony cameras

While I made comments previously about Nintendo's strategy in the gaming marketplace, gaining market share partially at the expense of Sony, Sony is trying to break into the high-end camera market. In some respect, they are using the disruption strategy mentioned in the earlier article, but in the DSLR market.

Sony has multiple "low-end" DSLR camera models, not one or two, as you might expect. Either they think that the low-end market is more profitable (probably), or they want to gain some ground there before trying to push too hard into the higher-end market.

Having said that, they have released two full-frame cameras that seem very high-end, with 24 megapixels. But with another look, you can see that these severely underprice the competition. I think with this aggressive pricing, they are able to break into the high-end enthusiast market.

It is rumored that Sony is going to have a line of non-DSLR cameras that still use the larger sensor and interchangeable lenses. Panasonic and Olympus already have similar models on the market, which cost more than low-end DSLRs. I'm surprised at the pricing, as I would have expected the extra complexity of a SLR would entail a greater cost than a camera without so many of the mechanical, moving parts. I would hope and expect prices to fall on this new type of camera, after the initial excitement of new models wears off. In the meantime, expect to pay a premium for high-quality (large sensor) but small cameras. I predict that Sony's introduction into this market will force prices down, at least at some point, due to the increased competition.

As for the DLSR market, some Sony fans are afraid that the new line of cameras might affect the development of DSLRs. I don't think they'll abandon DSLRs, but I don't think they ever intended to completely take over enough market share to become equal with the current entrenched leaders, Nikon and Canon. They don't need to be #1 or even #2 in order to develop new features and continue making a profit. To dominate the DSLR market would mean developing more professional-level products and having a bigger infrastructure to support it, and I question whether it's worth going after the full professional market. Amateurs and enthusiasts on a budget can make great photos with almost any of the brands, and this is a much bigger market.

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