man NGL the CEO really should have kept quiet with this one. Recently in gaming spaces the PS5's reputation has gone down the gutter and now italian plumber cock is the hottest new thing to put in your mouth because of this statement. All the Nintendrones are coming out the woodwork to shit talk the PS5
Totoki doesn't care about console wars. He's appropriately advising shareholders on the profitability and the state of the product.
Maybe he could have been a little bit more tactful in his delivery. He's kind of a random CFO coming in and looking at playstation with how he wants to change it.
I'm familiar with Totoki, so it was hilarious to see people happy with him taking over for in the interim and replacing Jim Ryan just because he is Japanese, but Totoki isn't a gamer, he doesn't care about video games at all.
One of the biggest problems for SIE is their new structure that replaced heads of regions with a more centralized approach. There is no Jim Ryan successor who is an obvious choice, combined with most of the original heads of Sony gone now, there is also no obvious choice for moving forwad.
If Totoki makes the wrong choice in naming a CEO of SIE, he can probably kiss being the next Sony Group CEO goodbye. He needs to get them to shift from just revenue to profits, and to being more debt free and cash heavy. With more cash on hand they can acquire more companies and grow more quickly.
He'd probably love to buy a few gaming companies, but he doesn't want to finance them, especially with interest rates being so high. So he knows needs to cut costs in order to achieve expansion. Either that or start getting serious margins out of existing structures.
He may have to look outside of Sony in order to find his CEO, but that's pretty difficult too as it will rile existing SVPs at SIE, so he has to at least put on a show that he is considering them for the job. He'll likely want a Japanese CEO or at least someone who knows Japanese. He has to work hand in hand with this person. It may be easier for him to make a major Japanese acquisition and install their existing head as head of SIE, but there are no obvious choices for this. What Japanese companies have a strong understanding of growth? The only one is really Capcom, but Capcom's CEO is 83 years old.
Sony is in a strong position right now, a lot of that thanks to Jim Ryan, but they have serious growing pains and how they navigate that will determine how they succeed in the future, but Jim Ryan is really one of the last few options from people who were there from the start.