Stringer Shakes up Sony Management, Takes President Position

[AranhaHunter]

http://www.pcworld.com/article/16035..._position.html

Four years into his term as chairman of Sony and with the company facing plunging sales Howard Stringer plans to implement a company-wide reorganization and shake-up top management.

The changes, which will be effective from April 1, will see Stringer take on the title of president of Sony and with it direct control of the company's key electronics business. Stringer will retain his chairman and CEO titles, which gives him group-wide control of Sony, and Ryoji Chubachi, who currently serves as president, will become vice-chairman to assist Stringer in safety, quality and environmental issues, Sony said in a statement.

"Consumers want products that are networked, multi-functional and service-enhanced utilizing open technologies, and user experiences that are rich, shared and, increasingly, green," said Stringer in a statement. "This reorganization is designed to transform Sony into a more innovative, integrated and agile global company with its next generation of leadership firmly in place."

The electronics business will reorganized and two main groups will sit at its heart.

The Networked Products and Services Group will bring together Sony's PlayStation games console, Vaio personal computers, Walkman audio products, new mobile products and Sony Media Software and Services, which develops a common service platform across Sony products. All of these products currently provide access, or will in the future, to Sony's PlayStation Network, an online content distribution system that Sony expects will power its networked electronics products in the future.

At the top of the division will be Kaz Hirai, who currently runs the PlayStation business at subsidiary Sony Computer Entertainment. Hirai is a Sony veteran and fluent English speaker and managed Sony's U.S. PlayStation operations while Stringer was running Sony's U.S. consumer electronics business.

Another U.S. executive, Sony Electronics President Kunimasa Suzuki, will become senior vice president of Sony and deputy president of the new group. He will lead the Vaio business and a project to create new products that utilize the best technologies from across Sony.

The second major group will be the New Consumer Products Group that will bring together Sony's Bravia TV, digital imaging, home audio and video businesses.

It will be led by Hiroshi Yoshioka, who currently heads Sony's TV business. In this role he will also oversee the Semiconductor and Component Business Group. Yoshihisa Ishida, who currently runs the Vaio business, will head the TV business group in Yoshioka's place.

The reorganization will also see Katsumi Ihara, currently group CFO, shifted out of the main company and off its board to become an executive director at Sony Financial Holdings.

"The changes we're announcing today will accelerate the transformation of the Company that began four years ago," Stringer said in a statement. "They will now make it possible for all of Sony's parts to work together to assume a position of worldwide leadership and, together, achieve great things."

In January, Sony warned that sales in the current financial year, which ends in March, are expected to be ¥7.7 trillion (US$78 billion), a 14 percent cut from its previous forecast of ¥9 trillion, and net income will drop from an expected profit of ¥150 billion to a loss of the same amount. Sony blamed the strong Japanese yen and global economic slowdown for the problems.

Interesting, let's see what Stringer can do as president now, I think he'll have more say and more liberty to do the restructuring he needs and wants, I don't know and man the PSN stuff, I hope they can pull it off, sounds bold and ambitious, I like it.

Need someone to head SCEJ that will get them making games, Kaz seemed to not really care about games as much as he did about DD and getting the PSN unified across all Sony products (not necessarily a bad thing), this new division will hopefully make that happen and SCEJ can give us Legend of Dragoon 2, Siren 3, TRICO and other games.

[Maximus]

Heh, I just posted this elsewhere!

I think your hope that the new division concentrates on games is not going to be fulfilled. PSN will get a lot better, but SCE will be diluted by non-SCE directors who will want to concentrate on games even less. Thankfully we have Shuhei Yoshida, he'll sort out Japan!

[AranhaHunter]

Heh I didn't know where to post it so I posted it here, I wonder what Stringer will do now that he has more liberty though, he has hinted on buying Ericsson's shares of the venture and IDK what he should do about MGM shares, selling now would be losing a lot of money over what they paid a couple of years ago, buying more into MGM doesn't make much sense.

I didn't mean the new division concentrate on games, I meant SCEJ concentrate on games, someone is gonna take Kaz's spot in that division right?

[Maximus]

Well it looks like Kaz is staying in charge of SCEI, maybe it's temporary similar to how he took over at SCEWWS for a while when Phil left .

I think Sony have already stamped their authority on Sony Ericsson, if you look at their upcoming phones 3/4 are super high-end and the Idou touch-screen is Sony tech most of the way through. MGM can wait for a while, but there will be movement on that soon.

There are other things in the works, much bigger than this and the restructuring of the divisions is just the beginning...

[AranhaHunter]

Interesting, I don't suppose you can spill the beans on things much bigger than this so I'm not even gonna ask lol.

You're right about the mobile phones, and I do expect Stringer will end up buying out the rest of Ericsson's shares, but I have no idea what's the best way to go about handling their 20% of MGM, in one hand they could get some cash in hand right now, but they'd still be losing a lot of money on their investment, if they buy more of MGM, then well that doesn't make sense because most MGM movie sucks.

Yeah IDK, I hope Sony can get back on track and these changes will make it happen.

[blitz6speed]

Looks like sony will be investing more into the PSN, building up the playstation brand in the process. Awesome. I see this as super positive for the PS3 myself, since the PS3 is the #1 gateway for the PSN and will be for a damn long time.

[xtop]

hmm..so are we seeing this as good news then?

[Maximus]

Originally Posted by xtop

hmm..so are we seeing this as good news then?

Yes.

[mikejet]

I wish I could just shake up my company and become prez...

[caliblue15]

Sony Computer Entertainment CEO Kaz Hirai will continue to oversee Playstation in his new role as the head of the Networked Products and Services Group.

Earlier this morning Sony announced a major restructuring of their company, with Sony CEO Howard Stringer being named president of the company and the formation of two new groups within the company, the New Consumer Products Group and the Networked Products and Services Group.

As head of that latter group, Hirai will oversee the Walkman lines, Sony Media Software and Services, which develops a common service platform across Sony products, and Sony Computer Entertainment.

The goal of this new group is to "maximize the potential and pace of Sony's innovation and to enhance profitability." Integral to this process, Sony says, will be the utilization and expansion of the Playstation Network.

What does that mean to gamers? It sounds like Sony is trying to do a better job of getting their different groups to work better together, which could mean greatly expanded Playstation Network offerings and some interesting product development. PSP phone? PSP Walkman? Who knows?

http://www.sony.net/SonyInfo/News/Pr...8E/09-028E.pdf

[caliblue15]

Sony announces the merging of its PlayStation, VAIO and Walkman businesses as Kaz Hirai takes charge of new helm.

Sony today revealed some of its restructuring plans that would enable the company to save $3 billion in yearly costs.

Perhaps the biggest news is that British-born Sony CEO Howard Stringer will replace Ryoji Chubachi as president of the company. 61-year-old Chubachi will become vice chairman in charge of quality and environmental issues, with Stringer to assume his expanded role from April 1st.

The company announced 16,000 job cuts last year, with a record operating loss forecast for the company in January. Stringer's expanded role should help the company reorganise its businesses:

"The Japanese can’t take decisive actions toward their comrades during hardship," said Yuuki Sakurai, general manager of financial and investment planning at Fukoku Mutual Life Insurance. "As a non-Japanese without such loyalties, Stringer is better positioned to conduct the large-scale restructuring that Sony has to do."

Outgoing president Chubachi said: "I look forward to supporting the new management team as they transition into new areas of responsibility and to continuing to add value in my new role.¿ ¿I am pleased that, building on the structure we've created over the years, the company is poised for an even greater future."

Stringer, a British-born U.S. citizen, became the first non-Japanese to head Sony when appointed in 2005. Chubachi became president in the same year, after previously being instrumental in Sony's video camera business. His removal is reflective of 'The Father of the PlayStation,' Ken Kutaragi, losing his position as CEO of Sony Computer Entertainment in 2006.

Kutaragi's replacement, Kaz Hirai, is to take charge of the newly formed Networked Products & Services group. The new division will combine Sony's PlayStation, VAIO and Walkman businesses, and will ensure that the company can focus on creating gadgets that can work together with one another wirelessly.

The company's Bravia televisions, Cyber-shot digital-cameras, and audio and video operations will come under the new Consumer Products Group. Bravia head, Hiroshi Yoshioka, will head this new division.

Sony also announced that they will create a new software based team to bolster product connectivity and save costs.

"These moves are bolder than we had anticipated and are positive," said Hitoshi Kuriyama, an analyst at Merrill Lynch. "We believe the new management and organisation will be effective in bringing out Sony’s potential in this new networked age."

The restructuring will also allow Sony to save $3 billion in costs from April 1st, which is more than the previously estimated $2.5 billion. Stringer commented on the announcements:

"This is the worst recession of our lifetime. But in difficult times, there is opportunity."

"The changes we're announcing today will accelerate the transformation of the company that began four years ago,” Stringer added. "They will now make it possible for all of Sony's parts to work together to assume a position of worldwide leadership and, together, achieve great things."

Naoki Fujiwara, chief fund manager Shinkin Asset Management in Tokyo, said: "Sony has gone into emergency mode. They know they have no time to waste and have to push even harder on their accelerator to speed up restructuring."

http://www.bloomberg.com/apps/news?p...fer=technology

[saprano]

Good news on the sony family working together. they should of done that along time ago. but wasn't Howard Stringer suppose to do that?

[kingofgrills]

Yes, but effectively Sony and Stringer removed a layer with Ryoji Chubachi stepping down as President. Before, all the product divisions reported to Chubachi, and then to Stringer. Now, all product division heads report directly to Stringer.

Hopefully, this change will allow Sony (Stringer) to make key decisions quicker than they were made under Chubachi. Traditional Japanese decision making is made largely by gathering consensus, which may take too much time with regard to technology changes. Stringer, being American, will help cut through that red tape.

I'm just wishing they would put better management in charge of PS3. Giving Hirai more than PS3 to be in charge of is not a good thing in my opinion.

[xtop]

https://forum.blu-ray.com/showthread.php?t=88916 this is fun caliblue

[Jordahn]

Originally Posted by xtop

hmm..so are we seeing this as good news then?

Why not? It's about SONY stepping up to the plate to fix its problems. Or do you not want them to do that...?

[Jordahn]

Originally Posted by kingofgrills

Yes, but effectively Sony and Stringer removed a layer with Ryoji Chubachi stepping down as President. Before, all the product divisions reported to Chubachi, and then to Stringer. Now, all product division heads report directly to Stringer.

Hopefully, this change will allow Sony (Stringer) to make key decisions quicker than they were made under Chubachi. Traditional Japanese decision making is made largely by gathering consensus, which may take too much time with regard to technology changes. Stringer, being American, will help cut through that red tape.

I'm just wishing they would put better management in charge of PS3. Giving Hirai more than PS3 to be in charge of is not a good thing in my opinion.

Stringer is British.

[xtop]

Originally Posted by Jordahn

Why not? It's about SONY stepping up to the plate to fix its problems. Or do you not want them to do that...?

...

was a simple question, i hadn't read much of the article at the time

[Jordahn]

Originally Posted by xtop

...

was a simple question, i hadn't read much of the article at the time

Oh... my bad, seriously

[saprano]

Originally Posted by Maxpower1987

Well it looks like Kaz is staying in charge of SCEI, maybe it's temporary similar to how he took over at SCEWWS for a while when Phil left .

I think Sony have already stamped their authority on Sony Ericsson, if you look at their upcoming phones 3/4 are super high-end and the Idou touch-screen is Sony tech most of the way through. MGM can wait for a while, but there will be movement on that soon.

There are other things in the works, much bigger than this and the restructuring of the divisions is just the beginning...

Are the bigger things going to shock people?

Also what does this mean for sony's first party studios? will the motivation be the same? will they stop caring about the importance of FP games

[joeorc]

Sir .HS turned IBM around, and he's going to do it for Sony.
XMB on the VIO, walkman,PLAYSTATION3, PSP all of those product's will connect to the PSN. and inter connect to each other.PSN grow's an more entertainment media, game's music, movies. and more applications across the xmb that is non game related

Good job. it's about time In my OPINION