By Kosaku Narioka

Sony Group has named Chief Operating Officer Hiroki Totoki, who has led the company's entertainment content growth, as its new chief executive.

The appointment, effective April 1, underscores the Japanese company's sharpened focus on its game, music and other entertainment businesses.

Sony's chairman and current CEO, Kenichiro Yoshida, said Wednesday that Totoki had led major company strategies such as investments in entertainment and semiconductors, calling him a leader capable of guiding the company for further growth.

Yoshida, who will stay on as Sony chairman, said he would support the new CEO as he takes the reins of the company.

Totoki has served as chief operating officer since April 2023 and also as chief financial officer since 2018.

The Japanese entertainment and electronics company announced other changes among its top ranks as well. Lin Tao, who currently serves as senior vice president for finance at videogame unit Sony Interactive Entertainment, has been named as the group's new chief financial officer.

The company also named top executives for the videogame unit and for its chip business.

Sony Group shares closed 3.8% higher at a new all-time high on Wednesday. The stock has been on an upward trend in recent months, driven by growing hopes for the performance of the company's games segment and other entertainment businesses.

Sony has spent billions of dollars in acquisitions in recent years to boost its entertainment content. The company bought U.S. videogame maker Bungie in 2022 and animation-focused U.S. streaming service Crunchyroll in 2021.

Earlier this month, Sony Group took an additional stake in Japanese publishing house Kadokawa for more than $300 million. It now holds a 10% slice of Kadokawa, which publishes books and magazines and produces videogames, movies and animation.

Entertainment businesses, such as games, music and movies, accounted for nearly 60% of overall revenue in its latest fiscal year, up from about 30% a decade earlier.

Sony Group plans to spin off its financial unit.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

January 29, 2025 02:26 ET (07:26 GMT)

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