Barely weeks after the hacking scandal that forced Sony to shut down its PlayStation online gaming service, the company has instigated a management reshuffle at the very top of the hierarchy.
The former president and group chief executive of Sony Computer Entertainment, Kaz Hirai, will become chairman of the division in August, with incumbent Akira Sato set to retire. Andrew House, the president of Sony Computer Entertainment Europe, will take Hirai's role as president of SCEI, effectively taking control of the day-to-day running of the entire PlayStation business.
Although the timing suggests links with the PlayStation Network hack, in which access was gained to Sony's database of tens of millions of PlayStation owners, it appears the move is more about preparing for the next phase in the company's hardware business, including the continued growth of PS3 and the impending launch of the new PS Vita handheld games device.
House is a veteran of the PlayStation brand, having been instrumental in the marketing of the original PlayStation console in the mid-90s. In 1996, he became vice president of marketing a Sony Computer Entertainment America, strategising the launch of the PlayStation 2 and PSP consoles across North America.
"We are facing new challenges this year, such as the successful launch of PlayStation Vita and further growth of PS3 platform as well as expansion of [our] non-gaming business," said Hirai. "I'm confident that the skills and expertise Andy has gained over two decades working for Sony and SCE Group will contribute enormously in leading the PlayStation business and to bring new initiatives in managing the business in the networked era."
Hirai is widely being touted as an eventual successor to Sony chariman and CEO Howard Stringer. A turbulent year for the company has seen it revise profit forecasts in the wake of earthquake damage to its factories and the PSN hack, which is estimated to have cost the company around $170m (£106m). According to Reuters, there were calls at a recent shareholders' meeting for Stringer to resign.
Meanwhile, Ken Kutaragi, the veteran engineer credited with overseeing the birth of PlayStation, has retired as Honorary Chairman of SCEI, retaining his role as senior technology adviser of Sony Corporation.
Kutaragi joined Sony in the 1970s and was heavily involved in the original iteration of the PlayStation – as a CD drive add-on for Nintendo's SNES console. When Nintendo pulled out of the deal, Kuturagi masterminded the re-invention of the technology as a standalone console, effectively dragging Sony into the games industry.
He was president of SCEI until the end of 2006 when he was replaced by Kaz Hirai. Kutaragi briefly became chairman of SCEI until retiring from that role in controversial circumstances the following year. It has been suggested that his move to the non-executive position of honorary chairman was a form of punishment for the huge costs of developing and launching the PS3 console.
With his responsibilities to "reinforce and further accelerate
the development of the PlayStation business including PlayStation Vita", House has a considerable challenge ahead of him. The PS3 has gained considerable ground on the Xbox 360 console, hitting the 50m unit mark in April.
But with the growing importance of digital downloads and online services, the company needs to ensure it can guarantee network security to consumers. It will soon also have a new Nintendo console, the recently announced Wii U, to compete against.
Elsewhere, the PlayStation Vita device, set to launch this winter, needs to find a space for itself in a crowded market that also houses the Nintendo 3DS and the growing range of gaming-centric smartphones and tablets.
