SCEI announces new Management team: Kaz gets new chair

[Sephiroth_VII]

It's not really total shuffle, but people are moving around in Sony. Sony Computer Entertainment Inc. has announced that Ken Kutaragi, President and Group CEO, will now be Chairman and Group CEO and Kaz Hirai, President and CEO of SCEA, will now be president and Group COO of SCEI. This will be effective December 1, 2006.

Yeah, you've read it before, the duo gets new positions, so here's a bit more info on the rest of the management team.

The company also announced the appointment of Akira Sato, a member of the board of directors, as Vice Chairman, and David Reeves, President and CEO and CO-COO of SCEE(Sony Computer Entertainment Europe) as Deputy President of SCEI.

Kutaragi will continue to oversee the entire SCE Group as chief executive officer. He will of course continue his duties and run things and make sure that Sony's PlayStation business doesn't tank.

SCEI Members of the Board of Directors as of December 1, 2006:

* Ken Kutaragi – Chairman and Group CEO
* Akira Sato – Vice Chairman
* Kaz Hirai – President and Group COO
* Masaru Kato – Deputy President and CFO
* David Reeves – Deputy President
* Howard Stringer
* Ryoji Chubachi
* Kenshi Manabe
* Shigeo Maruyama
Source (http://ps3.qj.net/SCEI-announces-new-Management-team-Kaz-gets-new-chair/pg/49/aid/74645) & Orig. Source. (http://www.scei.co.jp/corporate/release/pdf/061130e.pdf)

[VG Aficionado]

Can anyone elaborate on the consequences of this? That shuffle itself tells me pretty much nothing :-p

[Sephiroth_VII]

Pretty much nothing in my opinion, too. But lucky for Kaz. From what I can understand, Ken pretty much keeps his position, it just gets a new name.

[KnightRiderX]

basically things will be run a little more efficiently. I think Kutaragi was a little overwhelmed having to handle everyday transactions while keeping the big picture in mind. it better when one person does the day to day transactions while someone, who has the big picture in mind and overseeing the whole division, directs the day to day transaction holder if anything goes astray.

[CrumCon]

our boldy head friend Phil didnt get higher chair?? strange , causehe did alot of work.. more than Kaz does

[xbdestroya]

And how do you know how much work Kaz does or does not do? By the number of times he let's himself be interviewed by Western media?

Phil is head of Worldwide Studios - he received his promotion last year.

[EvilTaru]

our boldy head friend Phil didnt get higher chair?? strange , causehe did alot of work.. more than Kaz does

You do know Kaz does work outside of public appearances, right? He was basically in charge of SCEA, he's the one ultimately responsible for how the Playstation performs in North America, he's where the buck stops, it's like saying Phil didn't do alot when he was the President of SCEE, which would of course be totally untrue. Given the success of the PS2 in the North American market, at least some of it has to be attributed to Kaz's leadership, he was much more of a business executive rather than a PR mouth piece (not that he was ever really good at that part), same with people like Tretton and Dille, they've all got things to run. Of course Kaz had folks like Tretton and Dille to help him out, just like Phil had people like Shuhei Yoshida and Connie Booth, and Andrew House to help him on the first-party software side of things, and a bunch of creative directors/directors like Jaffe and Brian Upton to oversee first-party projects creatively.

[EvilTaru]

The biggest promotion is perhaps not Kaz's but Jack Tretton's promotion from Vice President sales and marketing all the way to President and CEO of SCEA, that's a huge promotion, not sure about Tretton's business acumen (although he did run a pretty successful PSP launch), I guess being a westerner he's probably going to be received better than Kaz whose confidence was often misinterpreted as arrogance, I'm quite sure now that he's in the hot-seat, every word Tretton speaks will be scrutinized by the likes of 1UP.

[pari]

http://www.ft.com/cms/s/f6728ed8-8095-11db-9096-0000779e2340.html


Sony sidelines PS3 mastermind Kutaragi

By Leo Lewis in Tokyo

Published: November 30 2006 18:58 | Last updated: November 30 2006 18:58

Ken Kutaragi, the maverick Sony engineer behind all three generations of PlayStation games consoles, will on Friday become chairman and chief executive of Sony Computer Entertainment in a management reshuffle that underscores Sony's difficulties in the video games market.

The surprise move, though technically a promotion, removes Mr Kutaragi from the day-to-day running of Sony’s games division at a critical moment.

With the PlayStation3 only just past its difficult launches in Japan and the US, Sony is desperate to ensure that its complicated machine triumphs in the holiday shopping season. The company described the changes as “strengthening” its management line-up.

In the longer-term, the PS3 faces stiff competition from Microsoft and Nintendo and a European launch next March for which some analysts fear it is not fully prepared.

Replacing Mr Kutaragi as Sony Computer Entertainment’s global president and chief operating officer will be Kazuo Hirai, a veteran of SCE’s US division, who prematurely claimed four years ago that the era of console wars was over.

Investors know Mr Hirai as a slicker, more confident presenter than Mr Kutaragi. He is also understood to have stronger working relationships with American, European and Japanese games makers.

Analysts said that Mr Hirai’s promotion to a global role at SCE could mark a critical shift in management thinking, with Sony changing its emphasis so that the current generation of games console will be its last as a hardware manufacturer.

“The appointment of Hirai could be the start of a shift from hardware to software,” said Yuta Sakurai, an analyst at Nomura. “I cannot now imagine a PlayStation4.”

Mr Sakurai said that Mr Hirai’s new global portfolio puts a predominantly software-focused manager in charge of the company, adding that SCE’s future would be shaped by Mr Hirai’s relationship with Phil Harrison, the president of SCE’s worldwide studios.

Analysts argue that while Mr Kutaragi, a brilliant engineer, was the right man to run SCE as a hardware powerhouse, Sony may now see better opportunities as a pure maker of games.

Sony has taken a big financial risk investing in the PS3, and according to some estimates the company will still be making losses on the console for some years. Recouping that loss will depend on Sony’s own ability to make popular games, and to nurture close relationships with third-party studios.

Other analysts played down the significance of the reshuffle, arguing that Mr Kutaragi would retain tight control of the division he made so powerful within Sony.

Mr Hirai’s role, as KBC analyst Hiroshi Kamide sees it, will be to use his superior communications skills to smooth-over SCE’s relationships with third-party games companies – relationships badly strained by the repeated delays of the PS3 launch, and the limited number of machines available even now.

Why does any news relating to PS3 have to be made negative? Its only doom and gloom for PS3.. If Sony is going to concentrate on software for which console would they target? So is the all first/second party games for PS3 a precursor to the future?

[Garfunkel]

i agree, that article was full of FUD. This to me seems like a good move, Kutaragi is an engineer at heart, he designed most of the ps1 and its successors by himself, remember he was the man to set up the secretive team to work on the ps1 in the first place.

Kutaragi is a visionary, very important overall to the business and Sony needs him right now, this will allow him to focus on the big picture while Kaz, who has proved himself i believe takes over then main management role.

[frosty]

I think it's funny how when Sony makes some changes to allow for better games on it's system, it's game over. Yet companies like MS and Nintendo do the same, they are applauded.

[Garfunkel]

I think it's funny how when Sony makes some changes to allow for better games on it's system, it's game over. Yet companies like MS and Nintendo do the same, they are applauded.

That pisses me off too, i think it's because M$'s financial situation is very good while Sony's is not so, so when M$ makes a decision they must be on the right path because of their record while sony is just making it worse. Completely incorrect, especially when Microsoft is actually in decline as well, not as visible as Sony but it will be more violent and is virtually unrecoverable. (just wait and see) ;)

[OmniCloud]

I think it's funny how when Sony makes some changes to allow for better games on it's system, it's game over. Yet companies like MS and Nintendo do the same, they are applauded.It's honestly getting annoying...Sometimes you just say "whatever" and go and play PS2 or DS or whatever, but when these stupid conversations and statements even spread into your local EB games-it's just starting to piss me off! What the hell happened to gaming? I really hope Nintendo and Sony are the winners this gen-especially Nintendo...Sometimes, I just get mad I even consider myself a gamer anymore...

[LaLiLuLeLo]

I find myself hating everyone around me who is a gamer. Ironic.

[frosty]

They are trying to divide us into factions who are blindly loyal to big hunks of plastic and metal, and pit us against each other. The gaming companies love the fanboys, as they are like free salesmen to them. Go to a Wal Mart to buy a PS3 when there's a Wii or 360 fanboy lurking around and you'll see what I mean. Like a used car salesman who gets no commission for wasting his breath promoting a company that couldn't care less about him (or her, though fangirls are a bit more rare) but rather only his wallet. And yet they spend their days crusading for these companies, typing on the forums and dwelling in their local retailers spitting their FUD nonsense. In fact, many spend more time doing that crap than actually playing the games they so furiously promote. Kinda ironic as well.

[Garfunkel]

i wonder why it, (the rise of "fanboyism") has affected the gaming business so much while movies/music etc don't really have seperate parties - as you say "salesmen".

I'm hoping the situation will improve soon as gamers generally are getting older, and (hopefully) more mature.

[Zer0-Sum]

So in effect life goes on at Sony, some people get more money and power and PS3 goes on. Now can I get one please Sony????? :)

[Phryne Astynome]

That article by those analysts is suggesting that Sony should move entirely from manufacturing to the services. Essentially become like IBM (which is basically run by the sales staff and PWC's consulting division) or GE. They are NOT I repeat NOT saying that Sony is going to go third party. They are merely speculating that with Kaz's appointment, it appears that Sony is shifting more into the services and are suggesting that this might not be a bad idea since manufacturing is no longer as profitable as it used to be.

I wouldn't go into a hoopla over that article like the other idiots (who seem to lack reading comprehension skills) on the other forums.

[masonite]

after investing so much in cell, sony are just going to roll over and never look at it again?

i wonder how many analysts they had to speak to before they gt an answer sensationalist enough to write about? ;)

Its no different to trying to plead insanity in a court case - its not about whether you really are or not, its about finding the doctor that will give you the answer you want ;)

fanboys will always be part and parcel of video games, especially when companies try to aim their games at the younger, less mature, more impressionable audience (not mentioning any names ;)). it seems to be more of a problem in the US than here in Australia, where most fanboys tend to keep their thoughts to themselves (AFAIK) but i pity people more than anything when i hear they've tried to "educate" salespeople/customers in an electronics store about how playstation/xbox/nintendo is "teh roxorz"...

also, is the website american or japanese? i know i probably sound like a tin foil hat manufacturer, but that could also play a part in which way the lean in terms of reporting good/bad news about the competition...

[casualkiss]

I agree with masonite.

The PS4 will require so LITTLE R&D compared to the "break the bank" investment required for the CELL.

The CELL's brilliance is how easily it can upgraded!

The PS4 will probably include:

1. A 200GB Blu-Ray (no R&D needed)
2. A 45nm triple or quad CELL with only minor changes
3. No software re-training (for once) on the CPU side, developers will be able to jump right in.
4. More RAM, bandwidth, etc.. nothing earth shattering

The only major change will be the RSX which I think Nvidia got too sweet of a deal at Sony's expense.

The PS3 is like the PSX, it is too ahead of its time and not all the parts are ready for prime time. But all the pieces are set for a kick ass polished successor.

[Domination]

Sony denies rumors from analyst

Wedbush Morgan analyst Michael Pachter has dismissed suggestions that Sony's executive reshuffle signals the company's exit from the console hardware market as "foolish" and "embarassing".

"I think Kutaragi's promotion signals absolutely nothing about Sony's plans for a PlayStation 4," Pachter told GamesIndustry.biz.

"It is embarassing that an analyst could reach that conclusion so soon after launch. Sony cannot have made such a decision, and to draw such an inference is foolish."

Pachter's comments come after former SCEA boss Kaz Hirai was announced as the new president of SCEI - a move which, according to Nomura analyst Yuta Sakurai, suggests a shift by Sony away from hardware and towards software.

It's not just Pachter who disagrees - speaking to consumer site Gamespot, SCEA communications boss Dave Karraker said, "Following the launch of the PlayStation 3 just a few weeks ago, and witnessing the huge consumer demand for the product, I think it would be rather short-sighted for anyone to predict there might not be a next generation of PlayStation product."

Pachter went on to say that he was in agreement with another analyst, Hiroshi Kamide, who has stated that he believes Ken Kutaragi will now be responsible for managing relationships with third-parties.

"I have said repeatedly that this is the last console "cycle" as we know them, and that future hardware would contain new features and functions, but not change the architecture until we are ready for virtual reality or holographic gaming," Pachter concluded.

source (http://www.gamesindustry.biz/content_page.php?aid=21453)

I guess I must have miss this the other day, but the debate is far beyond ridiculous. All except for the PS3, Sony has made a profit in the gaming business. For them to suddenly cash in their chips because of this can't even be summed up into words.

[Phryne Astynome]

What was really sad about that analyst's statement was that he was under the employ of Nomura (the top investment bank in Japan).

[Red_Eyes]

What this mean though, is that Sony's softwares are going to improve tremendously. Which is a good thing for us consumers.

[Garfunkel]

I guess I must have miss this the other day, but the debate is far beyond ridiculous. All except for the PS3, Sony has made a profit in the gaming business. For them to suddenly cash in their chips because of this can't even be summed up into words.

not only that but as if they won't make back double returns on the software witin the next few months.

its so ridiculous i can't put it into words.