Sony went through a period of decentralization from the 1990s to the 2000s where it was organized into 3 major divisions with no central budgetary control, acting like independent companies. However, this led to conflicts, lack of coordination and innovation, overhead costs, and Sony falling behind rivals. In response, Sony recentralized under new leadership, cutting costs and jobs while emphasizing coordination, commitment to core businesses like gaming, and a focus on innovation to compete with emerging competitors.