By Patrick Avenell

The Sony Corporation overnight announced the promotion of Kazuo Hirai to the president and chief executive officer positions, effective 1 April 2012. Hirai will replace Sir Howard Stringer, who will step down as president and CEO, but retain his position as chairman of the board.

Hirai is best known for his work modernising the Sony PlayStation business from a gaming console to a networked entertainment device. This change allowed Sony to plant Blu-ray Disc players in millions of homes, whilst also generating income streams through subscription services.

Furthermore, the PlayStation business has become a strong vertical market for Sony, with content from Sony Music and Sony Pictures able to be played on the console.

Stringer said these achievements played a role in his appointment.

“Three years ago, I started to work with the board on succession plans, and in February 2009, we named a new generation of leaders to be my management team,” Stringer said. “Among them was Kaz Hirai, who had distinguished himself through his work in the PlayStation and networked entertainment businesses.

“Kaz is a globally focused executive for whom technology and the cloud are familiar territory, content is highly valued, and digital transformation is second nature. I believe his tough-mindedness and leadership skills will be of great benefit to the company and its customers in the months and years ahead.”

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In accepting the new roles, Hirai recognised the challenges that have affected Stringer’s reign at Sony; praising him for his leadership during the 2011 tsunami and the hacking scandal that crippled the PlayStation Network last year.

“As challenging as times are for Sony now, were it not for the strong leadership of Sir Howard Stringer these past seven years, we would have been in a much more difficult position,” he said.

“I am grateful to Sir Howard and to the Board for their confidence in me, and I look forward to working with everyone at Sony more closely than ever before to build a strong future for our customers, shareholders, partners and employees.”

Hirai made it clear that Sony must continue to do well in its core categories, whilst also turning around its flailing TV business.

“The path we must take is clear: to drive the growth of our core electronics businesses: primarily digital imaging, smart mobile and [gaming]; to turn around the television business; and to accelerate the innovation that enables us to create new business domains.

“The foundations are now firmly in place for the new management team and me to fully leverage Sony’s diverse electronics product portfolio, in conjunction with our rich entertainment assets and growing array of networked services, to engage with our customers around the world in new and exciting ways.”