Sony goes down market with affordable camcorder to save its bacon

Bad earnings and the recession are making Sony (SNE) look at whether its traditional way of doing business can allow it to prosper in the current economic environment.

Sony has a plentiful supply of problems. Its PS3 game console still lags sales of the Microsoft (MSFT) Xbox 360 and Nintendo Wii in most months in most markets. It has too much competition in its business of building video screens. Its movie studio, like all others, is successful based on one or two blockbusters a quarter. No blockbusters equals no earnings.