Sony Gaming Chief Jim Ryan to Retire; Group President to Serve as Interim Head, Reports Reuters

By Sam Nussey

TOKYO (Reuters) – Sony Group announced on Thursday that Jim Ryan, the head of its gaming division, will retire next March. In the interim, Hiroki Totoki, the group’s president, will step in as CEO while a successor is sought.

Ryan, a British national, has been the CEO of Sony Interactive Entertainment since 2019, during which he played a key role in launching the PlayStation 5 console in the following year.

In a statement, Sony Interactive Entertainment noted, "Jim no longer wants to manage the trade-off between having a job in the U.S. and a home in the UK." The company praised him as an inspirational leader who successfully guided the organization through the global COVID pandemic while introducing the PlayStation 5, which has become the platform’s most successful iteration to date.

Totoki is expected to serve as interim CEO for a maximum of one year, and there’s a possibility that Ryan’s successor may be appointed before his retirement, according to a Sony spokesperson.

Serkan Toto, founder of the consultancy Kantan Games, remarked, "Ryan’s tenure as CEO was relatively short; many leaders in the gaming industry tend to remain in their roles for a longer duration."

Sony anticipates selling a record 25 million PlayStation 5 units in the current financial year as supply chain issues dissipate. However, in August, the company revealed that it was implementing promotions to sustain sales momentum amid weaker-than-expected demand.

The new CEO will face significant challenges, including expanding beyond Sony’s traditional emphasis on single-player console games and increasing focus on PC and mobile titles, as well as enhancing live service games that provide ongoing, updated gameplay.

According to Toto, "Sony is currently well-positioned in the console war against Microsoft, but the gaming landscape is poised for dramatic changes in the coming years."

Looking ahead, the gaming division, which is a vital profit center for the Japanese conglomerate, must adapt to a transforming industry where advancements in smartphones and cloud technology raise concerns about the necessity for standalone consoles, especially in an era of high-priced games.

Key achievements during Ryan’s tenure include the acquisition of studios such as Bungie, known for its "Destiny" series, to maintain a competitive edge against rival Microsoft, as well as the introduction of a virtual reality headset aimed at mainstreaming the technology.

Phil Spencer, head of Xbox, expressed admiration for Ryan, stating, "Jim Ryan has been a great contributor to our industry and a fierce leader for PlayStation."

Sony has also garnered recognition for its strategic shift towards entertainment, successfully revitalizing its franchises, exemplified by the popular television adaptation of its video game series "The Last Of Us."