Sony names Hiroki Totoki as new CEO to steer entertainment and games empire

By Yuki Furukawa and Vlad Savov 

Sony Group Corp. is appointing Hiroki Totoki as chief executive officer, a stamp of approval for the longtime finance chief’s push to expand the Japanese company’s entertainment reach.

 

Along with outgoing CEO Kenichiro Yoshida, Totoki helped steer the Tokyo-based technology conglomerate to focus on growing its entertainment offerings. Last year alone, the company expressed interest in potential acquisitions ranging from Paramount Global to domestic publishing house Kadokawa Corp. 

 

That focus on content — which spans PlayStation games, anime, music and movies — is bolstering revenue and profit at Sony. In the September quarter, operating profit grew 76 per cent amid sluggish demand for its smartphone components and image sensors, used by the likes of Apple Inc. and Xiaomi Corp.

 

Yoshida will remain as chairman of the board, Sony said in a statement on Wednesday. Hideaki Nishino will take charge of the company’s pivotal game and network services business, while Hermen Hulst is newly appointed as CEO of the game studio business. The moves, all effective April 1,  are part of a new management structure intended to secure Sony’s long-term growth, the company said.

 

Shares of Sony rose 4.7 per cent in Tokyo, extending the morning’s gains after the announcement. The stock has benefited from a reevaluation of tech sector investments this week as doubts rose about artificial intelligence hardware players.

 

“I am incredibly honored and humbled to have been entrusted with the important role of President and CEO. At the same time, I am looking forward to working as CEO with our approximately 110,000 employees to further evolve and grow Sony,” Totoki, 60, said in the statement.

 

Totoki had taken up more of the leadership burden at Tokyo-based Sony two years prior, when he added the titles of president and chief operating officer to his role as chief financial officer. He provides Sony’s commentary on conference calls after earnings each quarter and has steered the company through a difficult time with prolonged supply shortages of its flagship PlayStation 5 console.

 

Recent earnings have underlined the power of a few hit titles — such as Chinese videogame hit Black Myth: Wukong — to sway Sony’s PlayStation business segment. This year, the company awaits blockbuster titles including Capcom Co.’s Monster Hunter Wilds and Rockstar Games Inc.’s Grand Theft Auto 6.