28-9-2023 (TOKYO) Sony Group announced on Thursday that Jim Ryan, the head of its gaming division, will retire in March. In his place, group President Hiroki Totoki will take on the role of interim CEO while the company searches for a successor.
Jim Ryan, a British national, took on the role of CEO of Sony Interactive Entertainment (SIE) in 2019. During his tenure, he oversaw significant initiatives, including the launch of the PlayStation 5 console in the following year.
According to a statement by SIE, Ryan’s decision to step down is driven by his desire to no longer manage the trade-off between working in the United States and maintaining a home in the United Kingdom. The statement also praised Ryan for his inspirational leadership during the global COVID-19 pandemic, highlighting his role in the successful launch of the PlayStation 5.
Hiroki Totoki will serve as interim CEO for a maximum of one year. There is a possibility that a successor could be appointed before Ryan’s retirement, according to a Sony spokesperson.
Sony is projecting record sales of 25 million PlayStation 5 consoles in the current financial year, following the easing of supply chain challenges. However, the company revealed in August that it would use promotions to boost momentum due to weaker-than-expected sales.
The incoming CEO, who will succeed Jim Ryan, will face various challenges, including expanding beyond Sony’s traditional focus on single-player console games by developing more titles for PC and mobile platforms. Additionally, there will be an emphasis on live service games, which offer continuous, updated gameplay experiences.
In the long term, Sony’s gaming unit, a significant profit generator within the conglomerate, must navigate an industry in a state of flux, as advancements in smartphones and cloud technology raise questions about the future of standalone consoles with games that can cost $70 each.
Key milestones during Jim Ryan’s tenure included studio acquisitions like Bungie, the developer of “Destiny,” to maintain a competitive edge against Microsoft’s Xbox. Sony also launched a virtual reality headset in an effort to make the technology more mainstream.
Sony has been lauded for its shift towards entertainment and has found success in repurposing its franchises, most notably with the popular TV adaptation of its “The Last Of Us” game series.
