Ken Kutagari's Recent Demotion - thoughts?

[xbdestroya]

Well, I guess with so few of us currently aware that the site's back up, it's up to someone to make some posts for the post-GDC era. 8)

Anyway, what do you guys think about the Sony management, Ken Kutagari shake-up?

I was pretty surprised. I understand why they did what they did, but Sony better understand that Playstation is one of the strongest, if not the strongest, thing they have going for them.

I do hope that one day Ken assumes the CEOship, because I feel that Sony is best when it's run by it's engineer people and not by it's MBA crew.

[Brandon]

Here's an article pertaining to the subject:

PlayStation Boss Still Crucial to Sony Despite Snub

TOKYO/SAN FRANCISCO (Reuters) - The management reshuffle at Sony Corp could draw the PlayStation video games business even closer to the heart of its digital distribution strategy despite a diminished role for games guru Ken Kutaragi, analysts and industry watchers say.

Kutaragi, known as the "father" of the PlayStation, lost his seat on the Sony board and title of executive deputy president in changes this week that saw U.S. Sony head Sir Howard Stringer become CEO of the entire company.

Kutaragi, once regarded as certain to succeed current CEO Nobuyuki Idei, remains chief executive of Sony Computer Entertainment.

Industry players at a Game Developers Conference in San Francisco were stunned by the turn of events as Kutaragi has been seen as in control of Sony's destiny, with the PlayStation its only consistent profit earner in recent years.

To say Sony relies on gaming is an understatement. In the last three business years the game unit has been its biggest driver of operating income and one of its top revenue sources, aside from the struggling electronics segment.

The next-generation PlayStation 3 (PS3), expected to be released in 2006, is being seen as a home entertainment hub.

Some investors worry about lack of representation on the board of the computer entertainment unit at such a time.

But most analysts said it would be "business as usual" and might even help Sony's games business.

"When you consider that Mr. Kutaragi can now concentrate his manpower just on games, it's positive for the game business," said Yuta Sakurai, a senior analyst for Nomura Securities.

One analyst, who asked not to be named, said if anything the PlayStation hardware could become more central to Sony because of the company's digital distribution strategy for media, one that needed a central piece of hardware like PlayStation.

Stringer, with extensive experience in the entertainment business, could help bring about a "convergence" of hardware and entertainment that eluded so many tech companies in the 1990s.

Kutaragi loses oversight of Sony's semiconductor business at a time when it is preparing a new super chip, called Cell, for the PlayStation 3 and a range of other electronics gadgets.

"He's going to have to keep a balance with the rest of Sony going forward. Since he's lost responsibility for semiconductors he won't be able to sacrifice the rest of Sony for PlayStation in terms of both money and people," said Deutsche Securities analyst Takashi Oya.

But others doubt he will lose practical control over Cell since it is so intimately connected with PlayStation strategy.

FIERCE INDEPENDENCE

Kutaragi is seen to have lost out to Ryoji Chubachi for the No.2 post at Sony in part due to his strong-willed unflinching style of doing business and reputation as a maverick.

"I cannot compare them, but Mr. Chubachi is a good listener ... He is a man who listens to various people's opinions carefully and makes the right decision at the right time," outgoing CEO Idei told Monday's news conference at which the changes were announced.



But those very qualities are likely to help him as he prepares for a tough battle in the games business next year.

Sony holds a commanding share in the current generation of consoles, but will have to battle anew in 2006 with Microsoft Corp. and Nintendo Co. Ltd. as all three prepare next-generation consoles.

Microsoft is expected to release a new Xbox this year. Nintendo's plans are uncertain.

Most ruled out the possibility of Kutaragi leaving Sony, saying it would be out of character for a top Japanese executive and also that there was a lack of suitable options for him elsewhere in the industry.

Some analysts believe Kutaragi could still be a potential successor to Stringer or Chubachi.

"The door is still probably open to (Kutaragi)," said Hiroshi Kamide, Tokyo-based analyst with KBC Securities. "I don't think he wants to leave. As long as the PlayStation is the de facto standard in the industry, he's got a home."

Source (http://story.news.yahoo.com/news?tmpl=story2&u=/nm/20050309/tc_nm/tech_sony_playstation_dc)

[xbdestroya]

Good article!

[HGwells]

He's still head of SCE so it doesn't really affect us gamers. He just lost out on the top spot due to politics within the company.

[Danji]

I doubt Kutaragi is that upset himself. He said that his responsibility on the board and possible responsibility in the future would make him soft and dull his sharp edge of business risk-taking. I don't remember where I read the interview but it was last year (Q3) when I read it.

[oxygenuk]

this is going to affect our beloved playstation brand we know :cry:

[The_One]

The reason why he was "demoted" was perhaps because Sony wanted him to FOCUS on the success of the PS3. Don't forget, PS3 is VERY crucial to Sony's profit for the first few years (Since I don't expect too many other Sony product to use the CELL just yet), and if the PS3 fails, who knows what'll happen to Sony. I'm pretty sure they don't want Kutaragi-san to be distracted by other divisions and instead simply focus on one important division: The entertainment division.

Well, that's my thoughts.

[Coded-Dude]

SONY tv's(and other tv companies who strike a deal) will probably start using cell pretty soon, and we should also see it on the market for computers in late 06 or early 07.
I think IBM is planning on launching the first cell workstation late next year.....

However, because of the success of the playstation I think it only logical that Ken focus primarily on that aspect of the company.
There are lots of suitable CEO's and who can direct the company as a whole in a new direction, and with Ken still heading SCE in the current direction we only have good things to look forward to.
He was a likely candidate for CEO, and in my opinion he still is, but SONY needs to make some changes first.....bringing in outside help(Stringer) will do just that.

I'm excited about SONY's future, and for now have faith in their internal restuctruing

[Omega Blue]

Right now...i think what the Ps3 leader needs to do is listen, From what i read stated by his Peers, this new guy is alot better listener and less of a "My way and logic is better cause it is" type of person. Now obviosly Kutagari was starting to listen because he went with outsourcing for the Ps3's hardware. He said he needed it powerful so he joined up with Toshiba and IBM to create the Cell. He needed the memory to be insanely fast, so he contacted RAMBUS to (for the second generation) to create the memory and bus design. He obviously heard the cries of needing more graphical power so he got nVidia involved in the project (also im sure to kick Microsoft in the nuts hard enough to get there testicals lodged in their throats). Devs cried more "the ps2 was difficult to program". So what did the ps3 team decided? lets go with OpenGL, its well known, and still does not put handcuffs and shackles on the devs like XNA does. But right now they need someone who will pay attention to the feed back devs with Ps3 dev kits will give. And address whatever problems or sugggestion quick and accordingly.

I think Kutagari still has a good chance to become the next CEO, but it will only happen later on down the Line. I think we may also be bumped back up to the Playstation team leader before he is made CEO. But this will all happen much later.

But this is my opinion. :)