Question

Read the passage below and determine which combination of the given statements can be correctly inferred from the text. Passage: In the late 1990s, Sony commanded the global portable audio market with its iconic Walkman line, but by the mid-2000s, the company faced deep stagnation and declining market share, struggling against aggressive digital rivals. In 2005, a structural overhaul swept through the corporation, eliminating bloated, redundant departments and aggressively narrowing the company's focus onto a unified entertainment and gaming matrix. The massive success of the PlayStation console ecosystem, combined with targeted expansions into image sensors and premium audio gear, engineered Sony’s multi-billion-dollar modern resurgence. Today, Sony’s interconnected ecosystem of gaming hardware, exclusive software networks, and subscription streaming services commands massive consumer retention, locking millions of users into its proprietary digital environment. Statements: 1. Sony's mid-2000s stagnation was driven by intense competition from digital rivals and an inefficient, bloated internal structure. 2. The corporate strategy of streamlining operations and prioritizing a highly focused gaming and entertainment matrix was crucial to Sony’s turnaround. 3. Sony's modern profitability is exclusively dependent on its traditional portable audio hardware rather than its digital services or consoles.

A Only 1 and 2
B Only 2
C Only 1 and 3
D Only 2 and 3
E All 1, 2, and 3
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