Sony Group announced that President Hiroki Totoki will take on the additional role of CEO starting April 1, while current Chairman and CEO Kenichiro Yoshida will retain his position as chairman. This move solidifies Totoki's leadership as Sony, renowned for its consumer electronics like the Walkman, aims to bolster its presence in the entertainment industry, a transition for which Yoshida is acknowledged.
Sony's shares, encompassing movies, music, and image sensors, closed 3.8% higher, surpassing the broader Tokyo market by 1% on Wednesday. Totoki, who became president in 2023 and previously served as the company's CFO, has been steering Sony's financial updates and is now also heading the pivotal gaming unit responsible for the PlayStation 5.
Yoshida praised Totoki for his role in shaping growth strategies, including investments in content IPs and semiconductors, stating, "He is a leader capable of shaping our vision and strategy for future growth." Lin Tao will step into the role of chief financial officer, becoming the first woman to hold this position, transitioning from her executive role in the games division.
Additionally, Hideaki Nishino will take over as CEO of the gaming unit, having previously led the technology segment. Under the guidance of former gaming chief Jim Ryan, Sony introduced the PlayStation 5, expanded into live service games, and acquired Bungie for $3.6 billion in 2022 amidst increased industry acquisitions.
Analysts at Bernstein forecast improvements in M&A efficiency at Bungie and overall cost reductions due to Sony's new leadership. Amid a scarcity of high-profile games, upcoming releases like "Ghost of Yotei" and the highly anticipated "Grand Theft Auto VI" are expected to invigorate the industry, prompting optimism for the next 1-3 years, though long-term growth remains uncertain.
Sony's interest in expanding its entertainment portfolio was demonstrated by discussions to acquire Kadokawa, in line with its ambitions in the sector.