The Times U.K. on Monday paraphrased unnamed company sources who said Sony will "abolish or fundamentally alter many of Sony's long-established business practices." Changes would be primarily focused on Japanese operations with "factory closures and the abolition of several major divisions."
The extent to which Sony's game division will be affected by the rumored restructuring is unclear.
Such changes by British CEO Sir Howard Stringer have met resistance from Japanese management, the report said, but analysts say sweeping restructuring, expected to be announced early next month, is long overdue.
Creidt Suisse analyst Koya Tabata said, “The most important thing is that, to improve organizational strength in the areas of development, purchasing and marketing, it will be necessary to further concentrate power in the hands of [Sir Howard] and unless this is achieved we believe [Sony] will be unable to close the gap with competitors such as Apple and Nintendo."
UPDATE: Sony Japan has denied the report, with spokesman Atsuo Omagari stating to Reuters, "We do not plan to announce additional restructuring measures at this time. We don't have any such plan."