Group president Hiroki Totoki cements position at top of the electronics and games giant
29 January 2025 - 21:20
by Agency Staff
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Sony's new CEO, Hiroki Totoki, in Tokyo, Japan, May 23 2024. Picture: REUTERS/KIM KYUNG-HOON
Tokyo — Sony Group president Hiroki Totoki will add the CEO role from April 1, while incumbent chair and CEO Kenichiro Yoshida will remain as chair, the entertainment and technology conglomerate said.
The moves cement the leadership of Totoki as Sony, once famous for its consumer electronics such as the Walkman, pushes to strengthen its position in entertainment. Yoshida is credited with helping engineer the shift.
Shares in Sony, whose business includes movies, music and image sensors, closed 3.8% higher, outperforming a 1% rise in the broader Tokyo market on Wednesday.
Totoki assumed the president’s post in 2023 and has also served as finance chief. He already helms Sony’s earnings briefings and took the role of chair of the gaming unit behind the PlayStation 5 console as it took steps to improve margins.
“He spearheaded growth strategies for the Sony Group, such as our investments in content IP [intellectual property] and semiconductors, and is a leader capable of shaping our vision and strategy for growth,” Yoshida said in a company statement.
Lin Tao become the first woman to serve as CFO after serving as an executive at the games business. Hideaki Nishino was appointed CEO of that unit after serving as head of the technology side of the business.
Under earlier gaming chief Jim Ryan, Sony launched the PlayStation 5, made a push into live service games and bought developer Bungie for $3.6bn in 2022 at a time of heightened industry dealmaking.
“With new leadership in place, and broader Sony in efficiency mode, we expect lower M&A costs at Bungie — and cost reductions elsewhere — to be areas where PlayStation can under-promise and over-deliver,” Bernstein analysts wrote in a client note before the announcement.
While the games business has been grappling with a shortage of high-profile titles, the pipeline includes Ghost of Yotei with Grand Theft Auto VI expected to boost the industry.
“We are positive for the next one to three given a rich [software] pipeline,” Jefferies analyst Atul Goyal wrote in note this week, adding “there is a question over long-term growth.”
The company’s entertainment ambitions were underscored last year when Sony was reportedly in talks to buy media powerhouse Kadokawa and eventually agreed to a capital tie-up.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Sony announces new CEO, first woman CFO
Group president Hiroki Totoki cements position at top of the electronics and games giant
Tokyo — Sony Group president Hiroki Totoki will add the CEO role from April 1, while incumbent chair and CEO Kenichiro Yoshida will remain as chair, the entertainment and technology conglomerate said.
The moves cement the leadership of Totoki as Sony, once famous for its consumer electronics such as the Walkman, pushes to strengthen its position in entertainment. Yoshida is credited with helping engineer the shift.
Shares in Sony, whose business includes movies, music and image sensors, closed 3.8% higher, outperforming a 1% rise in the broader Tokyo market on Wednesday.
Totoki assumed the president’s post in 2023 and has also served as finance chief. He already helms Sony’s earnings briefings and took the role of chair of the gaming unit behind the PlayStation 5 console as it took steps to improve margins.
“He spearheaded growth strategies for the Sony Group, such as our investments in content IP [intellectual property] and semiconductors, and is a leader capable of shaping our vision and strategy for growth,” Yoshida said in a company statement.
Lin Tao become the first woman to serve as CFO after serving as an executive at the games business. Hideaki Nishino was appointed CEO of that unit after serving as head of the technology side of the business.
Sony stalking media powerhouse behind ‘Elden Ring’
Under earlier gaming chief Jim Ryan, Sony launched the PlayStation 5, made a push into live service games and bought developer Bungie for $3.6bn in 2022 at a time of heightened industry dealmaking.
“With new leadership in place, and broader Sony in efficiency mode, we expect lower M&A costs at Bungie — and cost reductions elsewhere — to be areas where PlayStation can under-promise and over-deliver,” Bernstein analysts wrote in a client note before the announcement.
While the games business has been grappling with a shortage of high-profile titles, the pipeline includes Ghost of Yotei with Grand Theft Auto VI expected to boost the industry.
“We are positive for the next one to three given a rich [software] pipeline,” Jefferies analyst Atul Goyal wrote in note this week, adding “there is a question over long-term growth.”
The company’s entertainment ambitions were underscored last year when Sony was reportedly in talks to buy media powerhouse Kadokawa and eventually agreed to a capital tie-up.
Reuters
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