Sony is poised to post its first full fiscal-year loss since 1995, and reversing the company's fortunes has become a top priority for management. In December, Sony announced a cost-cutting measure that would save $1.1 billion through April 2010--at the price of approximately 16,000 jobs.

Howard Stringer

Today, the ailing Japanese electronics giant revealed the next phase in that corporate-restructuring effort. CEO Howard Stringer, the company's first British-born executive, will take direct control of Sony's bread-and-butter electronics division, with current electronics-division president Ryoji Chubachi becoming vice chairman.

"Consumers want products that are networked, multi-functional, and service-enhanced utilizing open technologies, and user experiences that are rich, shared, and, increasingly, green," Stringer said in a statement. "This reorganization is designed to transform Sony into a more innovative, integrated, and agile global company with its next generation of leadership firmly in place."

As part of the restructuring, Sony's PlayStation, VAIO PC, mobile, and media software and services divisions have been reorganized under the new umbrella arm Networked Products & Services Group. The group will be headed up by current Sony Computer Entertainment CEO Kaz Hirai, who will also continue his role as president and CEO of SCE. A second division--New Consumer Products Group--will handle development of Sony's TV, digital camera, and home audio and video businesses, and will be led by current TV executive vice president Hiroshi Yoshioka.

Following on from Stringer's professed desire for products that more substantively integrate with one another across divisions, Sony also announced the formation of the Common Software and Technology team. The group has been tasked with implementing "integrated technology and software solutions" across the company.

The moves come as Sony faces mounting losses from its games group. As part of its third-quarter earnings report in January, Sony reported sales of ¥393.8 billion ($4.03 billion), down more than 32 percent from the same period of 2007. For the quarter, Sony managed to sell 4.46 million PlayStation 3s globally, a dip from the previous year's 4.9 million units.