There'd been rumours of a drastic shakeup at Sony involving the slaying of "sacred cows." This is likely it, since Sir Howard wants to drag Sony out of slavish, single-minded production of hardware into a more unified direction that's focused on software and connectivity, where Sony's always been, to put it lightly, shitty.
So having two overarching groups—a consumer products one that does TVs, cameras, that kind of thing and a networked division that oversees PlayStation, Walkman and Vaio is good for two major reasons. One, it makes it more likely that the software focus will evolve and that gear will legitimately work together in satisfying ways (necessary, because what makes Sony's products suck when they do is rarely the hardware, it's the software, and their ecosystem is cluttered, schizophrenic mess). Two, they'll put out less crap and maybe focus more on a few really good things. There were 18 camcorders at CES. Eight. Teen. Camcorders.
Focusing on making fewer products, ones that work together with great software, is how Sony will be great again. Godspeed, Sir Howard. [Hat tip to Bits]