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Forums - Gaming - Ken Kutaragi Retires from executive role

OriGin on 26 April 2007

http://www.scei.co.jp/corporate/release/pdf/070426e.pdf

SCEI and Sony announce Executive Management Transition at Sony Computer Entertainment Inc.

TOKYO, JAPAN, April 26, 2007 – Sony Computer Entertainment Inc. (SCEI) and Sony Corporation (Sony) have jointly announced today that Ken Kutaragi, Representative Director, Chairman and Group CEO, Sony Computer Entertainment Inc., will retire from his executive position at SCEI effective June 19, 2007, when SCEI’s annual shareholders’ meeting will take place. Mr. Kutaragi will pass on the torch to the next generation, stepping back from his executive management responsibility of the company to serve as Honorary Chairman of SCEI.

With his deep and instinctive insight into future technology, Mr. Kutaragi will also continue to support Sir Howard Stringer, Chairman and CEO, Sony Corporation, as senior technology advisor.

Concurrently, Kazuo Hirai, currently President and Group COO, SCEI, will be promoted to President and Group CEO, continuing his responsibility as the leader of the PlayStation® business worldwide.

Mr. Kutaragi, well known as the “Father of PlayStation”, invented and launched the original PlayStation in 1994 and its successor, PlayStation 2, in 2000. Since the introduction of PlayStation and subsequently PlayStation 2, these platforms opened up a vast market of computer entertainment. The two platforms combined now have an installed base of more than 200 million units in homes around the world, with more than 2 billion units of PlayStation and PlayStation 2 software titles shipped worldwide. The third generation of the company’s home computer entertainment system, PLAYSTATION®3, launched in November 2006 in Japan and North America and in March 2007 in Europe, will continue to revolutionize the computer entertainment experience with its immense computational power connected to the network.

After completing the launch of PLAYSTATION 3 worldwide, Mr. Kutaragi has decided to pursue his dreams beyond PlayStation and to accelerate his network vision.

“I am happy to graduate from Sony Computer Entertainment Inc. after introducing four platforms to the PlayStation family,” said Ken Kutaragi, Chairman and Group CEO, Sony Computer Entertainment Inc. “It has been an exciting experience to change the world of computer entertainment by marrying cutting edge technologies with creative minds from all over the world. I’m looking forward to building on this vision in my next endeavors.”

“Ken Kutaragi is a rare combination of a powerful visionary and entrepreneur in one figure,” said Howard Stringer, Chairman and CEO, Sony Corporation. “Not only has he created a multi-billion dollar business for the Sony Group, he has brought the industry into a new dimension. Sony has benefited tremendously from his vision, his 2/2 creative genius, and from the very strong team he assembled and nurtured. As Ken moves forward to pursue new opportunities, we will encourage and support him. My support also goes to Kazuo Hirai, who is a terrific executive with a proven track record with PlayStation business in the US. I am confident that he will inspire and lead SCEI to new heights.”

Is retirement Japanese for 'You're Fired' (from the sidewinder missle under the wing of the harrier)? 



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gamingdevil on 26 April 2007

Right, he destroyed the PlayStation brand and now he leaves... SO clever of him!




OriGin on 26 April 2007

EDIT - Sorry wrong thread.



Erik Aston on 26 April 2007

I didn't think this would happen for another year or two, but I knew it would happen.

This was a necesary step. Its an exact mirror of Iwata leaving Nintendo 5 years ago.



"[Our former customers] are unable to find software which they WANT to play."
"The way to solve this problem lies in how to communicate what kind of games [they CAN play]."

Satoru Iwata, Nintendo President. Only slightly paraphrased.

fooflexible on 26 April 2007

I have a hard time believing they'd fire him based on the ps3 performance. Despite generally low sales, it is already helping them win the blu-ray war, and if blu-ray out in out wins the ps3 will be hailed as it's leading cause. Secondly they've yet to launch any big titles to really make a difference as far as consoles go. And I don't think anyone can argue that the the psp is selling poorly, with 20 million units sold, and it holding it's ground it's already proved itself successful.

 Yet Sony has been champaion of this industry for a while so they must be furious to be taking a back seat to Nintendo on consoles and handhelds. And even more important is the money aspect. They have spent far more money then Nintendo to develop the userbase they have, it's hard to argue taking on that kind of risk. Imagine telling a company to spend 20 billion to get back 22 billion. That's a 10% profit margin garnered on the most successful two consoles ever. Which your basically saying, if your not No.1 by a long shot your going to be losing money. And that's dangerous. Worse too is that this should have been Sony's bread and butter generation. The generation where they made so many deals and now own so many studios, and their brand could sell itself that they could produce a larger profit margin. I believe it was time to start playing smart instead of expensive, and that may be the reason for him leaving. Or he could be at the point where he's had enough. 



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ceres on 26 April 2007

I called his firing if sales didn't pick up to happen after the holiday season. I don't believe for a second this wasn't a result of a better of two options deal given to him by the powers that be.

And fooflexible, you need to find an article where one of the top guys from Sony basically flamed Ken about how he was the reason for all the delays and having a lot of money wasted on development because he was never happy with it.



To cash in my CC rewards points for $300 in Circuit City gift cards to purchase a 360 or not: That is the question.

reverie on 26 April 2007
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Hardcore gaming is a bubble economy blown up by Microsoft's $7 $6 billion losses.

bdbdbd on 26 April 2007

This is the traditional way when executives get fired. Kutaragis promotion last summer was just a way to get him away from messing things more than he already did. PS3 isn't selling like Sony would want to, while shareholders are pressuring Sony. This is their way to show that Sony is doing something. Also it's not a coincidense that Kutaragi leaves the same day that shareholders meet. This plays time for Sony.



Ei Kiinasti.

Eikä Japanisti.

Vaan pannaan jalalla koreasti.

 

Nintendo games sell only on Nintendo system.

fishamaphone on 26 April 2007
Erik Aston said:

I didn't think this would happen for another year or two, but I knew it would happen.

This was a necesary step. Its an exact mirror of Iwata leaving Nintendo 5 years ago.


 Don't you mean Yamauchi?  Iwata is the *current* big-boss.



kber81 on 26 April 2007

I have a full respect for Kutaragi. He is the one who provided a new direction in gaming with PS1. I think everyone should keep in mind that he has a great contribution in vg entertaiment. If not him we would moulder in Mario's mushrooms world.