ICMR Case Studies and Management Resources
 Asia's Largest Online Collection of Management Case Studies

Quick Search


www ICMR


Search

 

The Death Of Aibo

In late January 2006, Sony Corporation (Sony), the world’s second largest consumer electronics company, announced that it would stop the production of Aibo, its widely popular robot dog. This decision to shut down its robotics division was a result of Sony’s worldwide restructuring efforts to focus on businesses that generated more cash flows and profits.

The robotics division was responsible for the development and production of Aibo, the world’s first robot dog marketed on a mass level. Even Qrio, a humanoid robot in the development stage, would be shut down with the closure of the robotics division.

In addition to the robotics division, the company also decided to shut down its cathode ray television-tube factory at San Diego, USA. Sony’s decision to shelve Aibo didn’t seem to have gone down well with Aibo’s owners. Both the youth and elderly people bonded very closely with this robot pet.

Aibo could recognize people’s faces, move about, and show emotions just like a normal dog. A study conducted by researchers from the Purdue University on the social and emotional impact of Aibo found that a majority of young children, aged between 6 to 15 years, said that Aibo could be a good companion.

Among the elders, Aibo was a conversation starter as people would begin their conversations enquiring about that person’s Aibo. Ever since Aibo was launched in 1999, Sony had sold around 150,000 robots. These robots were currently priced at around US$ 2000 a piece.

The robot dog had a loyal group of owners and admirers who considered it a symbol of Sony’s inventive technological capabilities. Though Sony announced that it would continue to provide maintenance services for the next seven years, many of Aibo’s owners were dissatisfied.

Sony had always been revered for its innovative and quality products like the iconic ‘Walkman’ and widely popular ‘PlayStation’. Many analysts felt that Sony’s decision to dump Aibo would impact Sony’s stature in the minds of its consumers.

contd....

To download this micro case study (No. MCMI0003 ) click on the button below, and select the case from the list of available micro cases:


2006, ICMR Case Studies and Management Resources . All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means - electronic or mechanical, without permission.

 


Copyright © 2007 ICMR . All rights reserved.
Terms of Use | Privacy Policy