Father of Sony PlayStation steps down

[wraggster]

via yahoo

The chief architect of Sony's PlayStation game console stepped down Tuesday as the Japanese company struggles to defend its dominance in the video game industry and revive its reputation as an electronics pioneer.

Ken Kutaragi, 56, retired as Sony Computer Entertainment Inc.'s chairman and group chief executive, the gaming unit said Tuesday. The unit is now headed by Kazuo Hirai, SCE's former president and chief operating officer.

Kutaragi had already been relieved of day-to-day responsibilities as president last year but stayed on as chief executive and chairman. In April, he announced his intention to retire from those positions this month.

Though no longer a board member, Kutaragi will hold an advisory post at the gaming unit, according to SCE official Sayoka Henmi.

The departure of Kutaragi, an icon among gamers, marks the end of an era at Sony Corp (NYSE:SNE - news). that saw the company dominate the video game industry with its flagship PlayStation consoles.

But it also highlights troubles amid a series of blunders over the rollout of its PlayStation 3 and intense competition from Nintendo Co.'s Wii console and Microsoft Corp.'s Xbox 360.

Kutaragi's most recent brainchild, the PlayStation 3, has been marred by embarrassing production shortages and a $600 price tag that some fans said was too steep. It went on sale late last year.

Tokyo-based Sony shipped 5.5 million PS3 machines in the fiscal year through March 31, fewer than the 6 million the company had targeted. Nintendo shipped 5.84 million Wii consoles worldwide during the same period.

The PS3's hefty startup costs have weighed heavily on the company's fight to drive up profit in its core electronics division. Sony is not expecting to post a profit in its game business until the fiscal year ending March 2009.

The flop has added to the woes facing the maker of the iconic Walkman, which has ceded its leadership in portable music players to Apple Inc.'s iPod.

[maxipower90]

HAHAHA SONY its just a matter of time before u come crumbling down

[Shadowblind]

Hmmm....Sony.....

Deeper meaning to this, I believe. Sony is most likely NOT pulling out of the console ring though.

I would say I cared if they did, but we're not talking about the PS2 anymore. The PS3 has done more damage to the company itself then I thought.

Tsk, tsk...

[Kulawend]

The PS3 could had been a huge success if not for Sony making so many mistakes.

Maybe they will learn from their mistakes?

Nah.

R.I.P. Sony :P

[jdnation]

Kutaragi's stepping down is more a result of internal politics that have surrounded the Sony divisions and particularly the gaming division.

Sony states that they plan to start making their money back by the beginning of the fiscal year in2008, ending in 2009.

Those 'embarassing production shortages' were taken care of pretty quickly... The Wii is still marred by production shortages.

Which idiot wrote this article? A flop? Slightly disappointing I'd say coming up .5 mil short of your target for shipping, but far from a flop... If that's a flop... I wonder what the makes the 360's downsized shipping goal...

[Solidsnake3000]

i think i heard this before some were or was it that nintendo guy i dont remember but i know some guy had retire or something

[h4s30]

you want to know the secret to ps3's steep price???

I'll tell you

technology

its new technology remember dvd's and dsl even cell phones all of these started out as expensive as time moved on people found more uses for these and more people used them and prices died down the same is happening to HD and Plasma screen and once we figure out how to go beyond 1080i or whatever HD and plasma will get cheaper and we'll have like nuclear tv's and stuff *thats a joke guys laugh*

but!!!!!!!

sony doesn't help their situation by having crappy launch games some of their new ps2 games should've been a ps3 launch "Rouge Galaxy" should've been a ps3 launch hell there still releasing ps2 games

matter of fact why are we still releasing ps2 games sony???

or another solution...

wait patience sony computer entertainment you have great games on the way why did you give us lame games at launch when you could've waited for a couple of months till devil may cry and metal gear and final fantasy were ready or maybe even Black 2 would be a great idea and hopefully EA learned that no matter how great the guns look if its short and no multiplayer you're gunna take away what makes a game fun i mean at least Xbox had some good games to throw out while they hid the crappy burger king games amongst the gears of the machine we call war and on the other side of oblivion

[cswallstreet]

I believe Sony should have left out the BlueRay which would had dramatically lowered the price and made it as an add on for people who wanted it. maybe would had helped.

[SSaxdude]

This can't mean anything good for Sony.

[jdnation]

First off this news is SOoooo Old.

The PS2 had $#@!ty launch games and it did fine. As for reasons why? Well publishers that invest tons of money in AAA games will want an install base to build first so they do not release them at launch. Secondly, AAA games could take around 4 years of so to complete, and final hardware is usually available 6 months before launch so devs making AAA games would rather take more time to get used to the hardware to give the game that quality, hence they won't be available at launch. Making good things takes time.. .especially on new hardware... which is why the majority of games at launch are usually rushed and suck. The only reason the Wii had the Legend of Zelda was because it was in devleopment for the Gamecube a long time ago and then ported to the Wii.

There are reason things happen the way they do... let's stop being whiny bitches about it. And as for suggesting separating Blu-Ray from PS3... ummm then how do you expect games to take advantage of Blu-Ray? It's not just for movies you know... It would be a stupid idea. The only advantange it gives is a lower price, which will happen all on its own in due time anyway...