Japanese electronics giant stuns market with loss as firm promotes PlayStation boss to head of the company.

Sony unveils $2.9 billion loss, replaces CEO

Struggling Electronics giant Sony is to replace current CEO Howard Stringer with Kazuo Hirai, the man credited with the rival of Sony’s PlayStation videogames business.

Welsh-born Howard Stringer has been in the top job since 2005 but the change of guard comes as Sony is expected to lose an astonishing $2.9 billion as the firm’s TV sales went into free fall.

Incoming chief Hirai has been president of Sony Computer Entertainment since 2006 and now faces the daunting task of a major shake up to get the Japanese electronics giant back on track and competing afresh with Korean rivals Samsung and LG.

The strong Japanese currency has hit a number of Japanese electronics giants hard, not helped by further natural disasters.

Analysts were expecting Sony to announce a $1.7 billion loss so $2.9 billion came as something of a shock and sent Sony stock lower despite a general rally of the Nikkei.

"The path we must take is clear: to drive the growth of our core electronics businesses – primarily digital imaging, smart mobile and game; to turn around the television business; and to accelerate the innovation that enables us to create new business domains," said the incoming Sony chief.

Check Also

Acer expands UK horizons with Bridgehead alliance

Bridgehead International is collaborating with Acer, which marks Acer’s commitment to supplying a diverse range …