Sony Interactive Entertainment has announced changes in leadership within its games unit, with two executives taking on new roles overseeing the technology and content aspects of the business. Hideaki Nishino will now serve as CEO of Sony’s Platform Business Group, while Hermen Hulst will be the CEO of SIE’s Studio Business Group starting June 1.
As Sony prepares to report its full year earnings, the company is under pressure to demonstrate improvements in margins within the games business, particularly with the launch of the PlayStation 5 console. Following weaker-than-expected year-end sales, Sony reduced its PS5 sales forecast in February and announced that there were no plans to release major titles in the next fiscal year.
The gaming industry is facing challenges, with Microsoft recently announcing studio closures including Tango Gameworks based in Tokyo as part of cost-cutting measures. Sony also revealed plans in February to lay off 900 employees and close a studio in London.
Group President Hiroki Totoki has made a commitment to implementing measures to enhance profitability within the games unit as the company navigates these challenges.
