I would say sony hasn't really tried to be completely innovative or cutting edge for years. Most of their problems stem from picking the wrong side of the fence.

VHS vs Beta Max (Sony Lost)
CD vs miniCD (Sony Lost)
SD/XD vs Memory Stick(Pro, Duo, DuoPro) (Sony Lost)
DVD vs UMD for PSP (Sony Lost)
HD DVD vs Bluray (Sony Won - a rare win)

Sony has chosen over the years to constantly be on the wrong side of the format wars with the exception of Bluray. Sony failed to ensure backward compatibility with their Playstation consoles.

For quite a while the category that was making them money was entertainment (aka Sony Pictures, etc). For Sony to recover in my opinion they need to start leading again instead of just being a follower.

i wasnt aware there was something wrong with sony......

On a fundamental level you have to implement a strategy across your consumer devices (think Apple). Sony really doesn't have any bright ideas as to how to connect their services across devices.

I am rather shocked that their stock has been overperforming lately. Is it from the Sony Pictures entity? Because I don't think they are really making money in most areas of their business.

Sony's shrinking revenues and negative EPS figures make it a tough company to value from a traditional standpoint, at least in comparison to its competitors. They recently acquired cloud-gaming giant Gaikai so that may be a reason for the ST jump in stock price.

Thanks for the information. I somehow missed that acquisition.