kazuohirai Sony to extend PlayStation business model to entire company

Sony's incoming CEO, Kazuo Hirai, is planning to extend the business model he employed for Sony Computer Entertainment, the home of the PlayStation, to the entire company.

Sony's incoming CEO, Kazuo Hirai, is planning to extend the business model he employed for Sony Computer Entertainment, the home of the PlayStation, to the entire company.

 
Hirai wants to link Sony hardware with software via online networks, a model used with the PlayStation console and PlayStation Network, suggesting that the company won't try to limit its growth to just hardware in many of its other important sectors.
 
The problem with linking with online networks is the bad reputation Sony has received over the hacking of its PlayStation Network and online gaming division, Sony Online Entertainment. If it decided to add internet connectivity to other product lines it will need to beef up security even more to avoid an even bigger disaster than what happened early last year.
 
kazuohirai Sony to extend PlayStation business model to entire company
 
Hirai was responsible for driving a successful PlayStation division in the face of tough competition from Nintendo's Wii and Microsoft's Xbox 360, cutting costs and increasing sales. The company's next-generation console could be years away, however, putting it at yet another disadvantage against its rivals.
 
However, before Hirai embarks on this ambitious plan he needs to restructure the company to cut losses. This will likely involve significant job cuts and the axing of some under-performing and non-strategic products. Its TV division will be under particular scrutiny.
 
Hirai officially takes the helm on 1 April, replacing current CEO Howard Stringer. Many see Hirai as a good person to bring the company back on track and shares have already gained 13 percent since he was named for the top job, in stark contrast to the 60 percent loss in share value under Stringer's leadership. The company is losing billions, however, so he has his work cut out for him.
 
Source: Reuters
Image Credit: Tokyoship