Sony Chairman Hirai Will Retire This Year

Sony Chairman Kazuo Hirai will retire in June after spending more than three decades at the company, according to Bloomberg.

The 58-year-old, who ceded the role of CEO to Kenichiro Yoshida in April 2018, will continue to advise the company after his retirement, Sony said in a statement. Shuzo Sumi of Tokio Marine Holdings was nominated to become chairman of the board.

Hirai, who took over as CEO from Howard Stringer in 2012, turned the company’s fortunes around by paring back and refocusing its operations. With Yoshida’s support, Hirai sold off the Vaio personal computer business, reshaped the television set unit and pulled the mobile business back from a destructive fight for market share.

He also invested heavily in the PlayStation games business and image sensors used in smartphones, now major drivers of the business. Profits hit a record last year as he ceded the CEO role. “Since passing the baton of CEO to Yoshida-san last April, as chairman of Sony, I have had the opportunity to both ensure a smooth transition and provide support to Sony’s management,“ Hirai said in a statement. “As such, I have decided to depart from Sony, which has been a part of my life for the past 35 years.“

Nevertheless, Hirai leaves as Sony is in need of another revival. With fewer games in store for the aging PlayStation 4 and Sony’s own Xperia phone business bleeding money, Yoshida will have to prove that the turnaround can continue. The mobile division had an operating loss of 15.5 billion yen during the December quarter, the fourth straight unprofitable period. Yoshida has so far rebuffed pressure to sell off the unit.

The PS4, headed for its sixth year, is one of the best-selling consoles in history. But this year’s software lineup is smaller than the record-setting 2018, mostly focused on a pair of zombie titles. Even the camera chips business is seeing an impact from slowing global demand for smartphones. Operating profit in chips fell 23 percent to 46.5 billion yen in the most recent quarter.