Sony to Restructure Leadership of Video Games Division

Sony has announced changes in leadership roles within its games unit, appointing two executives to oversee different aspects of the business. Hideaki Nishino will assume the role of CEO of Sony Interactive Entertainment's Platform Business Group, while Hermen Hulst will become CEO of SIE's Studio Business Group, effective June 1.

These changes come as Sony seeks to address challenges in its games business, particularly concerning the PlayStation 5 console. The company is under pressure to demonstrate improvements in margins and performance, especially after revising its PS5 sales forecast in February due to weaker-than-expected year-end sales. Additionally, Sony indicated that it does not plan to release major titles in the upcoming fiscal year.

The gaming sector as a whole has faced headwinds, with Microsoft recently announcing the closure of studios, including Tango Gameworks in Tokyo, as part of cost-cutting measures.

In response to these challenges, Sony has taken steps to streamline operations and improve profitability within its gaming business. This includes layoffs of 900 workers and the closure of a London studio, as announced in February. Hiroki Totoki, Group President of Sony, has committed to implementing measures to enhance profitability within the games unit.