Sony CEO Hiroki Totoki at CES 2025
(Source: Sony Corp.)
  • Sony (NYSE:SONY) announced that Hiroki Totoki, the current president, will be promoted to the position of chief executive officer, effective April 1st
  • Hideaki Nishino has been named CEO and president of Sony Interactive Entertainment, with Hermen Hulst retaining his role as CEO of the Studio Business Group
  • Hulst will report directly to Nishino and will oversee game production through PlayStation Studios, as well as expand video game IP through PlayStation Productions
  • Sony stock (NYSE:SONY) opened trading at US$22.22

There has been a major leadership shakeup at Sony (NYSE:SONY).

The company announced in a news release that Hiroki Totoki, the current president, will be promoted to the position of chief executive officer, effective April 1st. This marks the first major leadership change for the Japanese electronics and entertainment giant in seven years. Kenichiro Yoshida, the current chairman and CEO, will continue solely as chairman.

Leadership changes in Sony Interactive Entertainment

In addition to Totoki’s promotion, Hideaki Nishino has been named CEO and president of Sony Interactive Entertainment, with Hermen Hulst retaining his role as CEO of the Studio Business Group. Nishino’s new role as the sole CEO of Sony Interactive Entertainment will also take effect on April 1st, 2025. This change comes eight months after Nishino and Hulst were appointed as joint leaders of Sony Interactive, the parent company behind PlayStation. Following the transition, Hulst will report directly to Nishino and will oversee game production through PlayStation Studios, as well as expand video game IP through PlayStation Productions.

Challenges and opportunities ahead

Under Hulst’s direction, Sony’s “Concord” title faced arguably the most disappointing performance in gaming  history, highlighting the challenges in the competitive market. However, the leadership changes are part of a broader strategy to secure Sony’s long-term growth. Totoki, alongside outgoing CEO Yoshida, has been instrumental in steering Sony towards expanding its entertainment offerings. Last year, the company was in the running for potential acquisitions, including Paramount Global and domestic publishing house Kadokawa Corp.

The “live service” push has not worked out for Sony, to say the least. The company has cancelled or shelved more than 10 games in the past two years that relied heavily on online multiplayer functionality. Some of these were major titles such as “Horizon Online”, “Spider-Man: The Great Web”, “The Last of Us Factions Online”, and of course “Concord” which was released and cancelled, pulled from shelves in the span of a couple of weeks. Perhaps Noshino will keep a more “traditional” focus.

Focus on content and profit growth

Sony’s focus on content, spanning PlayStation games, anime, music, and movies, has been a key driver of revenue and profit. In the September quarter, the company’s operating profit grew by 73 per cent, despite sluggish demand for its smartphone components and image sensors, used by companies like Apple (NASDAQ:AAPL) and Xiaomi Corp. (OTC:XIACF).

A preview of Totoki’s leadership

Totoki’s leadership capabilities were on display earlier this month at the Consumer Electronics Show in Las Vegas. During the event, Sony revealed that investments in Japanese anime would become a new pillar of its growth strategy, leveraging its intellectual property and production capabilities across entertainment, music, and gaming.

Looking ahead

As Totoki takes on more leadership responsibilities, he will continue to navigate Sony through challenges such as prolonged supply shortages of its flagship PlayStation 5 console. This year, he faces competition from Nintendo’s (OTC:NTDOY) upcoming Switch 2. Recent earnings have highlighted the impact of hit titles like the Chinese videogame “Black Myth: Wukong” on Sony’s PlayStation business segment. The company is also anticipating blockbuster releases, including Capcom’s (OTC:CCOEF) “Monster Hunter Wilds” and Rockstar Games Inc.’s “Grand Theft Auto 6.”

Is this a promotion for Nishino, or a demotion for Hulst … or both?

Sony Corp. is one of the most comprehensive entertainment companies in the world, with a portfolio that encompasses electronics, music, motion pictures, mobile, gaming, robotics and financial services.

Sony stock (NYSE:SONY) opened trading at US$22.22 and risen just over 13 per cent since this time last year.

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(Top image: Hiroki Totoki at CES 2025. Source: Sony Corp.)


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