Sony’s Chairman and Chief Executive Howard Stringer has come out on top in a management power struggle and will take the job of company president as well.
That should allow him to push ahead with a major reorganisation of the struggling electronics and entertainment giant. The economic crisis has hit Sony and its peers hard with consumers spending less and Stringer said: “We intend to be among the corporate leaders responding to this crisis. The second challenge is the evolution of our competitive environment. We have been grappling with intense competitive shifts taking place in the consumer electronics landscape.” Sony has been crippled by tough competition trailing Apple’s iPod and game console maker Nintendo. Its troubles are indicative of a wider malaise in Japan. A raft of grim figures has just been released there. In January factory production fell by a record ten percent. Work is increasingly hard to find with three applicants for every two jobs and Household spending slumped 5.9 percent in the month. Inflation evaporated and Japan appears to be heading back towards deflation again.