Ken Kutaragi retires from executive position at SCEI to become Honorary Chairman

[VG Aficionado]

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.”Let's see how long it takes for trolls to claim "Krazy Ken fired! Sony and PS3 d00m3d!!!" this time.

[GUNDAMSEED]

I think it should have always been this way. Ken likes think up new stuff, to have waiting every 5 to 6 years was not good thing . I can't wait to see what else he going think up .

[jaxmkii]

im confused did he leave Sony of not? what is he doing now?

[jaxmkii]

Let's see how long it takes for trolls to claim "Krazy Ken fired! Sony and PS3 d00m3d!!!" this time.
LOL http://forums.e-mpire.com/showthread.php?t=72532

[VonGak]

Stringer got rid of his biggest competitor, so what's next?

[jaxmkii]

as long as he's around to develop PS4 in some way

[cliffbo]

“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.

[VG Aficionado]

I think there's no doubt PS4 will have an evolution of Cell and another Nvidia GPU, so in a way he already has created it.

[LaLiLuLeLo]

Am I missing something? He didn't leave. He just switched his position.

[Sephiroth_VII]

This is Stringers work...

[LaLiLuLeLo]

What the hell?? Is this bad news somehow?

[frosty]

Yes, he just shuffled positions, and he's done it before. Nothing to sweat.

[masteratt]

EDIT: Oh never mind, read the article and it's clear now.

Well, I always liked this guy (good vision and daring) and it's a good thing he didn't search for new challenges outside Sony and it's good to know he'll be around and I'm sure he will still get the occasional calls concerning his old tasks.

Thanks Sony, for letting us know......

[stuart_r]

Crazy stuff on this already happening at NeoGAF

http://www.neogaf.com/forum/showthread.php?t=152703&page=3

I love this quote :-S

"This sucks.
So basically the PS4 will be an xbox 3 clone. No thanks.
I will quit gaming after PS3. Simple."

WTF

They think Sony can't create a Playstation without Ken Their are other hardware people at Sony Things will go on :-D

[VG Aficionado]

What the hell?? Is this bad news somehow?I can sell you troll goggles for $5 and you'll see it clearly is a bad thing.

[GUNDAMSEED]

Truth be told ken always wants to add new tech to next PS but that not really going happen with PS4. Sony Fuck him over , LDC tv are doing great not many people seem to know that it was ken that push for that in first place . Also most every thing ken did Howard Stringer is mess up or riding the wave from it .

[VG Aficionado]

C'mon people, it's really soon to condemn PS4 already :laugh:

[chartwel]

if the SPE are really that powerful, then for ps4 all the need to do is add a lot more of them especially since developers will fully understand how to utilize them. so yes, in a way he has already created the ps4, at least partially.

[totobeni]

good for him...good for Kaz...good for SCEI...good for Sony...

[LaLiLuLeLo]

Why is everyone villifying Howard Stringer and mythologizing Ken Kuturagi like he's the greatest dude? Sony's been in a serious rut and he's (stringer) done a lot of positive things to turn their situation around for the better and so far it's working. Not to mention, Ken Kuturagi went over budget designing the PS3 and didn't even tell Howard Stringer, he had to find out through the grapevine! Kuturagi, while brilliant, is no saint. I don't really understand where this uninformed bashing of Stringer comes from. He's a smart businessman (there's a reason he's CEO of entire fucking Sony Corp), and I'm trying to figure out, where this hate for him is coming from. This is business. And I'm sure if Ken had his way, PS3 would be using some evolution of the Emotion Engine as it's CPU, because they were pushing the EE the same way they're pushing the Cell now, it just never caught on the way they hoped. Cell is taking off, and it's great, so I expect that it was Ken's intention all along for PS4 (god, since you had to bring it up) to be a logical progression of the cell that they've designed. The architecture is designed to evolve and grow on itself. I'm sure he won't stop creating new innovative technology, but stop jumping to the conclusions that he's being stifled somehow and...even further that Stringer is somehow responsible. He's been on Ken's nuts since day one trying to make friends with this guy. And I quote, "I've had dinner more times with Kuturagi-san than I've had with my wife, and that's not healthy." Jeez, people. Stop being ign'ant.

http://www.physorg.com/newman/gfx/news/SGE.TPR66.070106184603.photo00.quicklook.default-245x165.jpg
Howard Stringer, Japanese CEO

Now try and fathom how tough that has to be. A white dude as a japanese CEO, and he's still starting to pull things back together. Cripes.

[cliffbo]

its getting so you don't have to read a thread to see what was said

[LaLiLuLeLo]

It's like a soap opera. You can come in after not watching for a month and be totally caught up :-P

[MainMan]

Yes, he just shuffled positions, and he's done it before. Nothing to sweat.

I disagree. When a product line is a huge product center for a corporation, and you jeopardize its position in the market by overreliance on a single item (blue laser production) you obviously get demoted to some honorary position.

[9thPower]

Indeed Lalilulelo, I read that interview, the man had tough times because he wasn't Japanese and the way the Japanese do things there is very different. So people give the man credit, I like the guy, Its good for Sony to have a CEO like him, the guy is pretty straight forward.

[GUNDAMSEED]

Why is everyone villifying Howard Stringer and mythologizing Ken Kuturagi like he's the greatest dude? Sony's been in a serious rut and he's (stringer) done a lot of positive things to turn their situation around for the better and so far it's working. Not to mention, Ken Kuturagi went over budget designing the PS3 and didn't even tell Howard Stringer, he had to find out through the grapevine! Kuturagi, while brilliant, is no saint. I don't really understand where this uninformed bashing of Stringer comes from. He's a smart businessman (there's a reason he's CEO of entire fucking Sony Corp), and I'm trying to figure out, where this hate for him is coming from. This is business. And I'm sure if Ken had his way, PS3 would be using some evolution of the Emotion Engine as it's CPU, because they were pushing the EE the same way they're pushing the Cell now, it just never caught on the way they hoped. Cell is taking off, and it's great, so I expect that it was Ken's intention all along for PS4 (god, since you had to bring it up) to be a logical progression of the cell that they've designed. The architecture is designed to evolve and grow on itself. I'm sure he won't stop creating new innovative technology, but stop jumping to the conclusions that he's being stifled somehow and...even further that Stringer is somehow responsible. He's been on Ken's nuts since day one trying to make friends with this guy. And I quote, "I've had dinner more times with Kuturagi-san than I've had with my wife, and that's not healthy." Jeez, people. Stop being ign'ant.

http://www.physorg.com/newman/gfx/news/SGE.TPR66.070106184603.photo00.quicklook.default-245x165.jpg
Howard Stringer, Japanese CEO

Now try and fathom how tough that has to be. A white dude as a japanese CEO, and he's still starting to pull things back together. Cripes.



Let me ask you this , how much have you been following sony for past 5 to 6 years . The same LCD TV that are making sony a tons of money Ken is person who had push the deal and he had fight for that . When ken was kick from semi dev 65nm was delay .When he was there, they going up on world semi dev and profit all of sudden they seem like want to bail out .

Ken was never going get CEO becuase he was to out spoke even back when ps1 came out . Also alot of people at Sony in higer up did not like Ken this was well know , I don't care if i get ban for this but some people should check up on things rather just quoting some one bitching about somethings . Thing that kept sony profit for past 10 plus even now was done by Ken but because of other higer ups and Sony he was never going to get CEO hell they even him kick off board . When ken steps away from sony maybe he should write a book about amount of crap he had take but like most japanese people that nothing going to happen.

If he was to get CEO it would be huge problem in Sony so it went like this fuck over Ken to make everyone else happy .

[SleazyBig slim]

The father of the PlayStation cant retire, nooooooooooooo!!!!!!!!! If it wasn't for him, there would be no PlayStation so haters just need to chill on the Kutiragi disses.

[frosty]

There is nothing wrong with either KK or Stringer, so both sides need to STFU. KK is still with Sony, he just won't be as directly involved with SCEI now. He's still chairman (albeit honorary) of SCEI, which means that when he decides to take part in making playstation again he has the option to. PS4 is going to be built on modified PS3 tech as most already know by now, so there isn't much left for him to do at this point. Let him take his brilliant mind to focus on other areas of Sony.

[LaLiLuLeLo]

YADDAH YADDAH YAAADDAH

You obviously didn't pay attention to a word I said.
I didn't say Stringer good, Ken bad. Hardly. WHAT I SAID WAS, people need to get their facts straight before they go blaming Howard Stringer for every goddamn thing when (1) he's a fish out of water and (2) he's actually doing a good job for his company if you pay attention to the numbers since he's been there. I'm not saying anything negative to Kuturagi because I admire the guy as much as anyone else (well, maybe not as much as a computer engineering nerd might) but you should...well, not make this a 1 dimensional issue or paint it simple black and white, which is what you seem to be doing. A couple people were jumping howard stringer's shit when the news really doesn't have anything to do with him, and also somehow saw this as a bad news, when he isn't even leaving.

And gundamseed, you can't be banned for having an opinion :-p

[Kabbage]

Damn good run Ken!

They still have Masa Chatani, and if im not mistaken he should help keep the forward thinking playstation mindset alive :)

[frosty]

Hell, I bet KK wanted to step down from the position. I imagine the PS3 launch was probably one of the most stressful things he has ever endured. It's nice to know he will still hold a role at SCEI though, which gives him the option to still give his input on future projects.

[OG_Monkey]

so now he's exactly doing what with the playstation name?

[frosty]

I guess you could classify him as an overseer, rather than having as much direct involvement as before.

[Viper]

He's more policy now than direction. He'll still influence the PS4 so every sigh in relief now.

[GUNDAMSEED]

You obviously didn't pay attention to a word I said.
I didn't say Stringer good, Ken bad. Hardly. WHAT I SAID WAS, people need to get their facts straight before they go blaming Howard Stringer for every goddamn thing when (1) he's a fish out of water and (2) he's actually doing a good job for his company if you pay attention to the numbers since he's been there. I'm not saying anything negative to Kuturagi because I admire the guy as much as anyone else (well, maybe not as much as a computer engineering nerd might) but you should...well, not make this a 1 dimensional issue or paint it simple black and white, which is what you seem to be doing. A couple people were jumping howard stringer's shit when the news really doesn't have anything to do with him, and also somehow saw this as a bad news, when he isn't even leaving.

And gundamseed, you can't be banned for having an opinion :-p

Sorry about that ,what get me pissed people say Stringer is what making sony getting profit now and thats far from truth he riding a wave which was starting by Ken . But he also did some good things. Truth be told i really like Sony as company but now they seem so short site compare old days when used think about 5 to 10 years down the road. Guess i am angry at sony the company, such shame a man like Ken getting fuck over because of how out spoke he was but i guess thats how world works sometimes. Now matter what did for company kept mouth shut or your going screw you over.

[OG_Monkey]

how old in ken btw?

[Viper]

He'll be 57 in August.

[n1n9tean]

Ken Kutaragi, Papa of Playstation.

Papa, don't leave us! We're cold and hungry! :cry2:

(ROFL)

Thanks for all the years, pops!

[masteratt]

He is 57 (born in 1950).


Forgot to say earlier, cheers for the PS3 Ken!
http://newsimg.bbc.co.uk/media/images/41396000/jpg/_41396723_04_002499354_ken_ap.jpg

[LaLiLuLeLo]

gehhht off his dick >_>

[masteratt]

No way!
He is such a genius and has that wise old man look.

[rpgamer_2k5]

if the SPE are really that powerful, then for ps4 all the need to do is add a lot more of them especially since developers will fully understand how to utilize them. so yes, in a way he has already created the ps4, at least partially. Thats whats going to happen. The SPEs will be clocked much higher, and a lot more optimized so it'll be matching the performance of other cores. The difference will lie on the number of cores, the future Cell BEs will feature a large number of SPEs.

Now we see eight, in five years we'll see a PS3 with a BE that features 48 SPEs with one next-gen PPE, maybe a POWER6 PPE. :)

[LaLiLuLeLo]

I dunno if we need a Cell with A SHIT TON MORE SPEs in it. I can imagine the wafer yields on those things would be a nightmare. It'd make more sense to get more power out of the current number. Why not 2 Cells for the CPU (16 SPUs), as a logical increase in chip count, and double the number of SPUs is a lot of power, as well as stronger and faster cell chips. so instead of running the thing down with a boatload of SPUs that'll never get used, just double them, and make them more powerful than they are now. so you have an increase in power without developers having to micromanage the hell out of it. I'm not into computer science by any means but that makes more sense to me.

[Sephiroth_VII]

Why is everyone villifying Howard Stringer and mythologizing Ken Kuturagi like he's the greatest dude? Sony's been in a serious rut and he's (stringer) done a lot of positive things to turn their situation around for the better and so far it's working. Not to mention, Ken Kuturagi went over budget designing the PS3 and didn't even tell Howard Stringer, he had to find out through the grapevine! Kuturagi, while brilliant, is no saint. I don't really understand where this uninformed bashing of Stringer comes from. He's a smart businessman (there's a reason he's CEO of entire fucking Sony Corp), and I'm trying to figure out, where this hate for him is coming from. This is business. And I'm sure if Ken had his way, PS3 would be using some evolution of the Emotion Engine as it's CPU, because they were pushing the EE the same way they're pushing the Cell now, it just never caught on the way they hoped. Cell is taking off, and it's great, so I expect that it was Ken's intention all along for PS4 (god, since you had to bring it up) to be a logical progression of the cell that they've designed. The architecture is designed to evolve and grow on itself. I'm sure he won't stop creating new innovative technology, but stop jumping to the conclusions that he's being stifled somehow and...even further that Stringer is somehow responsible. He's been on Ken's nuts since day one trying to make friends with this guy. And I quote, "I've had dinner more times with Kuturagi-san than I've had with my wife, and that's not healthy." Jeez, people. Stop being ign'ant.

http://www.physorg.com/newman/gfx/news/SGE.TPR66.070106184603.photo00.quicklook.default-245x165.jpg
Howard Stringer, Japanese CEO

Now try and fathom how tough that has to be. A white dude as a japanese CEO, and he's still starting to pull things back together. Cripes.

I'm not bashing Stringer, I respect that guy, it's just that I like KK's wackyness, and Stringer clearly doesnt (since it's costing Sony millions).

[rpgamer_2k5]

I dunno if we need a Cell with A SHIT TON MORE SPEs in it. I can imagine the wafer yields on those things would be a nightmare. It'd make more sense to get more power out of the current number. Why not 2 Cells for the CPU (16 SPUs), as a logical increase in chip count, and double the number of SPUs is a lot of power, as well as stronger and faster cell chips. so instead of running the thing down with a boatload of SPUs that'll never get used, just double them, and make them more powerful than they are now. so you have an increase in power without developers having to micromanage the hell out of it. I'm not into computer science by any means but that makes more sense to me. Allow me to dream, damn it. Yes, in five years a 16 SPE Cell is definitely possible and it wouldn't be 2 Cells, just one. The 45nm fabrication technology that will be first use in Fishkill in 2008 should allow it to be feasible to manufacture Cell BE withe 16SPEs.

If anything, a 2x jump is way too small. Very un-Sony. I expect a huge stride and yes, I'm speculating but thats generally been the trend in the area of microprocessors in a span of five years. It could be 4x but I'm betting on 6x the performance in 5-6 years with a far more advanced fabrication process. The 45nm process has been developed, the first run will be 2008 so by that 32nm and 22nm will be developed with former entering 2010 (latest) and the latter by 2011. I have a feeling by that time 22nm fabrication technology will be available to Sony's PS4.

[LaLiLuLeLo]

all I'm saying is, instead of a shit ton of SPUs, why not just double the SPUs, plus increase their computational power a great deal, so you're getting an exponential increase in processing power without overwhelming devs with so many cores.

[curryking1]

Ok, honestly guys, Stringer is doing great as CEO. Do not criticize this man, this guy has experience and talent and great leadership. He's the greatest addition to Sony's brass in a long time.

And secondly, Kutaragi as chairman, if I'm not mistaken, gives him a lot more ability to direct things on a grand scale.

Man, think about it, this guy is now in the board meetings. He can now directly influence other chairman on Sony's board to cause more overlap of other divisions with SCE. This guy knows what the PS3 is about, and he can tell other board members how it can help not only SCE, but how it can integrate all the other divisions as the multimedia centre it can be.

Or that's what I would assume from my very limited business knowledge. I really only see this as positive news. I didn't know what to make of the last shuffle he had, but this one, if he stays as it for a while, is good news to me.

[angelcage]

Let's see how long it takes for trolls to claim "Krazy Ken fired! Sony and PS3 d00m3d!!!" this time.

basically 2 posts if you are on Neo Gaf:duh:

[curryking1]

Well Neogaf is just pure genius so what can we do lol. :P

[Viper]

all I'm saying is, instead of a shit ton of SPUs, why not just double the SPUs, plus increase their computational power a great deal, so you're getting an exponential increase in processing power without overwhelming devs with so many cores.

Exactly what I was going to say.

Didn't the Wii teach you guys anything? Efficiency and getting devs used to your tech are key. If you just keep throwing crazy stuff at them, they'll grow tired of it. Throw something they've been training on for the past 7 years and they'll show their thanks and exploit the system much faster.

[curryking1]

So can anyone who knows exactly what an honourary chairman is do elaborate on what KK's new position allows him to do? Or at least what kind of position this likely puts him in?

Is this just respect for him and he's leaving, or will he stil be an active part of Sony?

[Danji]

I'm gonna miss seeing the guy at conferences. Also, I keep looking up information on Kazuo Hirai and see NOTHING that qualifies him for being promoted so much. He kicked off the PS in north america and came up with the ad campaigns that got it sold (pizza hut + Crash Bandicoot = delicious). Other than that he hasn't done much for the brand from what I've seen.

[Viper]

So can anyone who knows exactly what an honourary chairman is do elaborate on what KK's new position allows him to do? Or at least what kind of position this likely puts him in?

Is this just respect for him and he's leaving, or will he stil be an active part of Sony?

Like I stated above, he'll be more on the policy and administration side now. He'll be more company wide in direction than as hands on as he was.

[curryking1]

Thanks for the clarification there Vipes.

[OG_Monkey]

gehhht off his dick >_>

lmfao, i was thinking the same...no homo

[Sephiroth_VII]

Thanks for the clarification there Vipes.

Vipes... Vipes...

:spit:

[xone_4]

10:00 :shocked:
10:20 :sleepy:
10:30 :snooze:
10:40 :ko:
11:50 :book:
12:20 :unsure:

i dont feel good about that!!

[pari]

Call me skeptical but my feeling is, KK just got moved out of the center of power to position with no authority. More of window dressing given to the high profile people. This is the way they would be slowly phased out of the company.

This does not change the deep respect I have for KK, an innovative and unconventional thinking person. Its really sad to see this happen.

CNET spin on this

http://news.com.com/Sony+says+sayonara+to+father+of+PlayStation/2100-1043_3-6179598.html?tag=nefd.lede

Except that I cannot believe they are quoting the idiot Enderle(clueless idiot, MS tail wagging dog) as the authority on this. I Blu-ray is definitely a right thing do, with Blu-ray diode dropping to $7 a piece, the drive price would definitely come down really quick.

[Sephiroth_VII]

I feel the same way, pari.

[SleazyBig slim]

That cnet article is full of negativity. First off PS3 is not an embarisment or failure. Sony's stock price has nearly doubled over the past year, the company is doing quite well.

[n1n9tean]

Hmmm. I was just thinking. I wonder what happens to Cellius now? Perhaps Cellius wasn't really part of his career plans and they tried to stick him there to get him out of the way and he didn't appreciate that. Just saying. Maybe they were graudually demoting him and he realized it then left before it went on any longer.

BTW, he's heading out on my birthday. Funny.

[OmniCloud]

Exactly what I was going to say.

Didn't the Wii teach you guys anything? Efficiency and getting devs used to your tech are key. If you just keep throwing crazy stuff at them, they'll grow tired of it. Throw something they've been training on for the past 7 years and they'll show their thanks and exploit the system much faster.Quote of the DAY!!!!

I hope Sony does this with PS4...I think devs will grow tired of learning something completely different every 5 years...

Plus, we'll see God of War 5 before you know it!!! LOL...

[Applefiend]

He's retiring early because he screwed up. Miyamoto is the same age, nobody is asking him to retire.

It's obvious from HD DVD Blu Ray could have won the format war without breaking a sweat. Bringing out 25GB H264 high quality transfers on a low volume subsidized player would have murdered HD DVD on arrival for very little loss.

Instead we got MPEG2 BDs that looked like crap and a dodgy $999 Samsung player. Sony underestimated the Toshiba/Microsoft opposition. A subsidized $499 Sony player in June with very high quality disks would have murdered HD DVD. Blu Ray was fine, all it needed was to be taken seriously with high quality content. A subsidized player could have been brought out for pocket change, the volume is much lower. No need to bring out PS3 early

And it was brought out early. When PS2 came out DVD was already established, in the timeline PS2 came out... round about now.

PS2 still had legs into November 2007, it still sells awesome. November 2007 is the sweet spot for the PS3 launch, with...

Cell with a beefier PPE to handle the areas the SPUs are weaker at.
512K Video ram to help 360 ports. Lots of people are targetting 360 as the lead platform, you need to cater for them.
Most importantly, G80 based RSX. Unified shaders like the 360 GPU only double, and more advanced. Next years GPU instead of this years. The 360 GPU on frigging steroids. Going into production say in around 3 months.
Cheap Blu Ray
64 nm
$499 price tag
Perhaps 10GB of EDRAM for awesome fillrate/particle since the obvious sweet spot for next gen gaming is 720p, 1080p is for movies. Not 1080p. Definitely not 480p, but 720p.

That's the PS3 that Dreamcasts the 360. There's how you get BD to win over HD DVD without spending billions.

nVidia had one job which was destroy the 360 GPU, I think they didn't really do that. It's, you know... a competitive GPU.

At the very least target November 2006, not March and then put your gpu and cpu on ice for a valuable 6 months.

But the thing is this is all ancient history, and a drag to talk about. PS3 is here, it's pretty good, good enough to compete with 360, although not destroy it. Cell is great, Blu Ray is great, support for the system has dropped off a little but most everyone who made PS2 great are still around.

But the fact remains that Sony chose the wrong strategy for PS3, and got paniced by HD DVD and Microsoft when there really wasn't a problem, paniced into launching early with a high price tag and less than stellar GPU, but this isn't a titanic disaster.

I'm very happy with my PS3, or perhaps it's not that I'm happy with my PS3, maybe it's that I'm happy with my PS2/PS3 games and unhappy with the Wii/360 games drought. I've had nothing on 360 I liked for the last 8 months but Lost Planet and Gears. That's bad... I'm so, so easy to please.

I'm unhappy that in this games drought I can't play old XBox games because the BC blows. I play old PS2 games instead because PS3 BC rocks. I'm unhappy they want 100NZD a month from me to download a demo when it comes out. If Ninja Gaiden Sigma was on 360 today, I'd have to wait a week or pay up for a service I don't use. I'm unhappy a system I bought only a year ago is starting to fall apart because of lousy build quality when I took great care of it. It obvious that 360 motherboard is going to warp and break in the next 6 months, out of warranty and I won't be buying another 360. My 360 experiance will be very very unsatisfying.

For Wii I'm unhappy about paying 50 bucks for a last gen game. So I don't. I'll buy the players choice for $19.99.

He did screw up, they delivered an expensive product to counter a threat that didn't really exist. But it's here now, it's driving the industry forward bespite the price tag and RSX. It's the best of the three consoles by a long way.

Sony have always been smarter about content rather than hardware. In some ways they look out of place with the most powerful system(By virtue of Cell and BD storage), they've never had it before. This is what will rescue PS3 from the KK screwups.

[rpgamer_2k5]

Exactly what I was going to say.

Didn't the Wii teach you guys anything? Efficiency and getting devs used to your tech are key. If you just keep throwing crazy stuff at them, they'll grow tired of it. Throw something they've been training on for the past 7 years and they'll show their thanks and exploit the system much faster. A 48 SPE Cell is no different from a 8 SPE Cell. There would be no changes in the programming model and yes, efficiency will be increase tremendously. I am not calling for fancy programming models, the heterogeneous setup is fine so we're probably not going to see any changes with design. A huge increase in the SPEs seems to be a natural step. Yes, efficiency will be most important but taking the parallelism route as well would be a bad idea either. :)

[IEatFriedPikmin]

Over a year ago, J Allard said in an interview: "What gets me out of bed and into the office every day is the thought of Ken Kutaragi's resignation letter, framed, hanging next to my desk."

http://news.teamxbox.com/xbox/13344/J-Allards-Dream-Becomes-Reality-Ken-Kutaragi-Resigns/

i thought it was funny....

[gozirah]

From GameDaily (http://biz.gamedaily.com/industry/feature/?id=15947&ncid=AOLGAM000500000000026)

Analysts Weigh In on Kutaragi's Departure

Perhaps Ken Kutaragi's departure shouldn't be surprising. SCE said it was in the works for a while, but was he squeezed out thanks to the PS3's limping out of the gate? Or was it simply time for him to move on? We speak with several analysts about why this happened and what it ultimately means for the PlayStation business.

The PlayStation 3 has been off to a slow start. Month after month competing consoles (Wii and Xbox 360) outsell the new Sony console here and in Japan. Sony's game division is expected to lose about 200 billion yen ($1.7 billion) for the fiscal year just ended March 31. Did PlayStation mastermind Ken Kutaragi take the fall? Or is his departure from SCEI simply his own wish to move on?

Pacific Crest Securities analyst Evan Wilson seems to believe that Kutaragi was squeezed out. He told Bloomberg.com that Kutaragi's retirement is "likely an indication Sony corporate isn't satisfied with the initial success of the PS3."

IDC analyst Billy Pidgeon agrees. Pidgeon believes that Sony CEO Howard Stringer is probably trying to save face, following the PS3's early struggles. "Sony had too much hype and not enough delivery," he told the AP. "Sony didn't notice that their audience was dwindling and didn't increase the base by playing to a wider demographic, and instead it played the old-school game of playing to the 18- to 32-year-old male early adopter. Nintendo saw this as a strategic flaw, and the Wii has basically become the disruptive product."

Other analysts aren't so sure that this was an attempt to save face. "[The move] probably [had] more to do with software and the PSP than with the PS3," Wedbush Morgan Securities analyst Michael Pachter told GameDaily BIZ. "It can't be his fault that the cost of the box was so high, and I have a tough time believing he insisted on Blu-ray. They probably just all agreed it was time to move on. Sony didn't have a great lineup of first party software for the PS3 or the PSP, and didn't get as much third party support this time around. I think Kaz Hirai is great, and the company probably doesn't need a visionary for another 10 years. They need an operations guy, need to drive costs down, and need to develop more software support (internal and external). Hirai will be great at that."

[ "We may see decision making get more decentralized, because the process of getting PS3 completed and into the market simply took too long" – John Taylor, Arcadia Research, on Kutaragi's departure ]

Indeed, the general consensus is that the promotion of Hirai is a positive for SCE. Lazard Capital Markets analyst Colin Sebastian agreed, telling GameDaily BIZ, "I believe Sony is working to improve the day to day management of the PlayStation group, and also to address some of the strategic issues related to the PS3 development. Kaz Hirai is a very capable leader for PlayStation, in my view, and I think he will be very visible in trying to steer the PS3 to a more respectable position in the market."

John Taylor, an analyst with Arcadia Research, noted that Kutaragi's departure combined with the elevation of Kaz Hirai could have some very interesting implications. "First, we may see Sony redoubling efforts to make the PS3 and future products more net centric," he told us. "Kaz brings a new level of awareness of Western preferences and technology trends to SCE. He has firsthand experience with dealing with Microsoft's online momentum in the U.S. competitive environment."

He continued, "Second, we may see more investment going into creation of product specifically for Western markets. Not that long ago, Sony had a robust first party studio system in the U.S., which was largely dismantled, and a lot of work was moved to second party studios. Sony may recognize that more investment in PS3 exclusive first party titles may be necessary over the life of the platform. Third, we may see decision making get more decentralized, because the process of getting PS3 completed and into the market simply took too long and went through too many stops. Sony faces a raft of new challenges that weren't expected a year ago, and quicker responsiveness will be important both in the near and long term."

[UPDATE] In an e-mail to GameDaily BIZ, AG Edwards analyst Bill Kreher added his thoughts on the situation, remarking, "The PS3 obviously has had a rough start and I would question whether Kutaragi would still be leaving if the console had been better received by the marketplace."



First of all, these analysts have no clue about the workings of Sony and are pulling things out of their butts even more than when they are predicting console sales.

Secondly, I think everyone is totally underestimating Sony with their strategy and putting far far too much weight on PS3 sales data after the first six months of launch-- before their fall line up has even arrived.

Thirdly, I very much doubt that the reshuffling of Kaz or Ken is some kind of idea that just popped into Stringer's head after he saw sales numbers. Corporate leaders are not quite as flighty as internerd fanboys.

[Viano]

good, one step closer to my PS9.

[LiquidEagle]

LaLiLuLeLo, if you want to make Howard Stringer look good, that is definitely not the picture to use :-p

I kid, I kid. This is interesting news, but nothing earth-shattering. I don't think Sony would ever really separate Kutaragi from his babies (the Playstation platforms), and I don't think Kutaragi would let himself be separated from them, so I still think he'll have plenty of influence. Whether it's through positional power or just the guy's hard-headed style. I have a lot of respect for the guy and I think Sony's (rightfully) glad to have him, and I also respect Stringer -- I'm not sure what the guy's done myself but HE'S A KNIGHT!! When Knights like him team up with Samurai, there's really no stopping it.

[Z]

When Knights like him team up with Samurai, there's really no stopping it.
Samurai make knights look like bullet-time.

[pari]

http://news.teamxbox.com/xbox/13344/J-Allards-Dream-Becomes-Reality-Ken-Kutaragi-Resigns/

i thought it was funny....

And I am sorry, I do not have any respect for that bald middle aged man(J Allard) who is desperately to be cool and innovative. I cannot think of any break through product that guy has done. What Video game industry is today is due to KK and not due to Mr. J Allard.

If you think that quite is funny, how about Mr J. Allard keeping up the bet he lost to the Newsweek reporter regarding the PSP sales numbers?

And by the way KK has made billions of dollars for Sony and all Mr J. Allard has done for MS, is lose billions of dollars for MS for far.

[jaxmkii]

http://doomd.ytmnd.com/

[Nameless]

I just can't see this as good news...
It seems like Sony's executive direction has been off for some time.
I can only imagine the water cooler conversations taking place in the Sony offices...

[Diresu]

I think this def is going to signal a change of direction for Sony. Although with Ken's vision gone, I fear for what the future iterations of the playstation will be.

P.S If next gen consoles end up being the same or a step backwards hardware wise, ima be pissed.

[mario25]

http://news.teamxbox.com/xbox/13344/J-Allards-Dream-Becomes-Reality-Ken-Kutaragi-Resigns/

i thought it was funny....

Many people don't seem to notice that Allard was "moved" to another role on their company way earlier than kutaragi.......

Being an engineer myself I have a lot of respect for kutaragi, I hope he succeeds in his next role as he did with the Playstation brand

[Applefiend]

He's doing stuff with their iPod killer. Under Allard stewardship, as you can see Apple are s****ing themselves:

http://www.macworld.com/news/2007/04/25/profit/index.php

The company shipped 1,517,000 Macs and 10,549,000 iPods during the quarter, representing 36 percent growth in Macs and 24 percent growth in iPods over the year-ago quarter. International sales accounted for 43 percent of the quarter’s revenue, according to Apple.

Damn that Allard! Damn him to hell!

Actually Apple just **** themselves everytime someone from the SEC comes round. :)

[curryking1]

I personally liked Ken Kutaragi (and his hilarious flamboyant ways) because he was a visionary.

That's it. No more, no less. He always thought big and tried to make big things, and I applaud him for that.

Saying that though, I wouldn't disagree that maybe he faltered a bit or was a bit too ambitious with the PS3, even though I still like what has come out of it at this point and what I think will come from it in the future.

To touch base on this visionary thing though....

Sony didn't have a great lineup of first party software for the PS3 or the PSP, and didn't get as much third party support this time around. I think Kaz Hirai is great, and the company probably doesn't need a visionary for another 10 years. They need an operations guy, need to drive costs down, and need to develop more software support (internal and external). Hirai will be great at that."

I think I could agree with this. Different times and different situations call for different skills. The PS1 needed a guy like Kutaragi, that can be argued. I think however the easiest thing to argue now is that skills other than dreaming and being a visionary are required at this point. The times now call for some different kind of action and different kind of strategy.

But even still, I must reiterate, how the PS3 has turned out, I quite like it feature wise and 'where it's heading in the future' wise. I just hope it can be successful, very successful. It'd be nice.

P.S. That Allard thing is funny lol, but it'd have a heck of a lot more meaning if we had seen his face in the past 50 years. I haven't heard a peep from him in a long time. What is he doing anyways?

P.P.S. I also wish the best to Kutaragi. I thank him for 'dreaming up the Playstation,' and I would never, ever forget something like that.

[Viper]

His shoot for the stars, hit the moon attitude helped them greatly but it has also cost them, literally. The large costs of the PS3 are his demand which are both a blessing and a curse. If it has hurt his career, we may never know beyond speculation. I doubt he's any less pleased with his creation.

[Applefiend]

P.S. That Allard thing is funny lol, but it'd have a heck of a lot more meaning if we had seen his face in the past 50 years. I haven't heard a peep from him in a long time. What is he doing anyways?

http://www.zune.net/en-us/press/executivebio/jallard.htm

http://www.zune.net/NR/rdonlyres/E9011EBF-2461-4465-A016-B65DF0FF2684/0/252x241jallard2.jpg
He'll outsell iPod as soon as he discovers a way to defeat Superman.

[curryking1]

You can't 'beat' the iPod. It's just not happening. Seriously.

And the name Zune? You cannot possibly hope to win with a name Zune. That's just ridiculous.

Allard is certainly a talented guy and a solid PR guy, but I don't think I can imagine anyone that can has the capacity to overtake the iPod right now.

Firstly, what on earth is Zune? Secondly, the iPod sells because it's absurdly simple and sexy looking. It plays music, and it makes you look cool. That is called the formula to head to win.

But seriously, you've got to be kidding me. "I am going to take on an international phenomenon in the iPod with a thing called Zune." That's sounds and probably is ridiculous.

If he can do something crazy though and Zune does in fact beat the iPod into a pulp, well, I'd have to give mad props to whoever does that.

His shoot for the stars, hit the moon attitude helped them greatly but it has also cost them, literally. The large costs of the PS3 are his demand which are both a blessing and a curse. If it has hurt his career, we may never know beyond speculation. I doubt he's any less pleased with his creation.

Totally agree. All in all, I think we'd all have to say we'd rather have had a KK in the business than not.

[Diresu]

Eh, i just hope this isn't a sign of bad things to come. To me this is really bad news. I thought and still think that Ken is a damn genius and should always be involved with the Playstation brand on a technical level at least.

What this means for Sony going forward is what scares me. Will it be a positive change or not? I know Kaz is suppose to be the guy that focuses on software and I hope thats true but non the less this is sad news for the Sony fans who respected KK for his vision and not the misquoted PR bs.

Hats of to you Ken for making me love video games and delivering the best gaming possible on the PS1 and PS2, nothing comes even close.

[curryking1]

I'm honestly already missing the days where KK is part of Sony. There's something nostalgic about it now, and it's only been like 12 hours.

Weird.... And yes, thank you for the PS1 and PS2. They both are freaking sick.

And ya, KK was always the genius tech man. It makes everything feel 'different' for the future already. It's almost like there is less expectation of new fangled technology going into the PS4.

Because who knows, would the next gen Cell processor be better if KK was still around, or would it be better if KK is gone? It's a hard ass question. There's no question however he cost Sony a heck of a lot of dough lately, but strictly talking technology for the future. What would've been?

[Diresu]

I'm honestly already missing the days where KK is part of Sony. There's something nostalgic about it now, and it's only been like 12 hours.

Weird.... And yes, thank you for the PS1 and PS2. They both are freaking sick.

And ya, KK was always the genius tech man. It makes everything feel 'different' for the future already. It's almost like there is less expectation of new fangled technology going into the PS4.

Because who knows, would the next gen Cell processor be better if KK was still around, or would it be better if KK is gone? It's a hard ass question. There's no question however he cost Sony a heck of a lot of dough lately, but strictly talking technology for the future. What would've been?

To repeat my earlier statement. If the industry goes the way of the wii, I will probablly stop playing games. Casual party games crap doesn't appeal to me and never did and if the ps4 is some craptacular ps3.5 I will be beyond angry.

[Viper]

To repeat my earlier statement. If the industry goes the way of the wii, I will probablly stop playing games. Casual party games crap doesn't appeal to me and never did and if the ps4 is some craptacular ps3.5 I will be beyond angry.

Oh goodness, it's not going the way of the Wii. Nintendo simply saw a market that wasn't being tapped so they snatched it. Obviously if everything went the same route as Wii, there'd then be a completely open high end, hardcore gamer market for the taking.

[n1n9tean]

Hmmm. I was just thinking. I wonder what happens to Cellius now? Perhaps Cellius wasn't really part of his career plans and they tried to stick him there to get him out of the way and he didn't appreciate that. Just saying. Maybe they were graudually demoting him and he realized it then left before it went on any longer.

BTW, he's heading out on my birthday. Funny.

Anybody else thought about this?

[Diresu]

Oh goodness, it's not going the way of the Wii. Nintendo simply saw a market that wasn't being tapped so they snatched it. Obviously if everything went the same route as Wii, there'd then be a completely open high end, hardcore gamer market for the taking.

Well its why I had the IF there. I don't think it will happen but I've seen stranger things. Either way, whole point was that now it makes me a bit scared about what the ps4 will be.

[curryking1]

Don't worry Diresu man, it won't all go 'party games' forever for us. Unless somehow magically the Wii sells 500 million consoles and the other guys don't have a choice hahahhaha...

But seriously, the 720 will always be the 720 in the future, the PS4 will be some crazy PS4, and Ninty will do whatever the hell they want because somehow they always get whatever they do to work.

What I'm trying to say is, it's all good for gamers like us who might not have the greatest interest in the Wii. And who knows really, maybe next time around the Wii will have next next gen graphics as well as the Wiimote to boot? And the Wii or Wii squared might offer experiences that directly compete with what we are buying on the PS3 in terms of 'hardcore gaming' (and not that the Wii can't, just for the sake of... being able to say something here lol).

I totally understand what you're trying to say though, but like Viper is saying also, there's two markets. Us two, we are obviously more in the enthusiast, high end tech savvy market (if I can call it that lol). I can't imagine them just forgetting about all of us hahahha, there's still plenty of us to warrant a good investment lol.

Edit - Also, us higher end, gaming hobbyists, we are their backbone. We are the guys who pick up their systems first. It only makes sense to be reaching out at least partially to our section of the market. We are like these game console's maker's springboard to success. There'll always be something for us 'hardcore guys' lol.

^I find that kind of odd lol. Cellius is... exactly what is that going to be now? lol

[Mr. Coww]

It was hard as hell to read this thread with the insane ammount of PS4/next Cell chip speculation.
God damn folks this was a thread to say bye to the guy who took gaming to a diffrent level(more open for the game makers and some new ways to give freedom). Stop the speculation on a chip that frankly is just a SINGLE aspect of a system. Give the dude his props for the controler shape before the CELL, that did more then anything else.

Learn what hes done as a whole to understand what he did for the industry.
The guys in a diffrent role, hes guna be making new ideas so its all good in the end if he keeps the ideas flowing.
Im done ranting now.
See ya Ken, enjoy your comfy new job.

[n1n9tean]

It was hard as hell to read this thread with the insane ammount of PS4/next Cell chip speculation.
God damn folks this was a thread to say bye to the guy who took gaming to a diffrent level(more open for the game makers and some new ways to give freedom). Stop the speculation on a chip that frankly is just a SINGLE aspect of a system. Give the dude his props for the controler shape before the CELL, that did more then anything else.

Learn what hes done as a whole to understand what he did for the industry.
The guys in a diffrent role, hes guna be making new ideas so its all good in the end if he keeps the ideas flowing.
Im done ranting now.
See ya Ken, enjoy your comfy new job.

Well, such discussion comes natural, my friend. You can't expect everyone in this thread to say a simple "Bye Ken!" Most of us have more to say than that. We think deeper. You can't talk about Kutaragi without talking about his current major creations and what his leaving means for their futures.

[Mr. Coww]

I just get pissed when every one just focuses on a single thing, its like talking about Shiggy and just refering to Mario. The dudes got alot of stuff to rember not just a current use of a multi-use chip.
And the think deeper thing doesnt make sense if your focusing on current not the past.

[n1n9tean]

I just get pissed when every one just focuses on a single thing, its like talking about Shiggy and just refering to Mario. The dudes got alot of stuff to rember not just a current use of a multi-use chip.
And the think deeper thing doesnt make sense if your focusing on current not the past.

Well, I could imagine everyone would start discussing the past later after June 19th when he officially retires (again, my birthday! lol). For now, everyone is aware that we are right in the middle of something huge at the moment--the gradual launch/liftoff of the PS3. So, that's why speculation goes directly to the present. Then, it will drift into the past as Kutaragi becomes a part of Playstation's past. Right now he's still there, you know.

[Cless]

In a statement, Kutaragi said he plans to pursue work beyond PlayStation: "I'm looking forward to building on this vision in my next endeavors."

SCE spokesman Fukuoka said Kutaragi will likely be tackling new challenges in fields that are related to the PS3 or the Cell microchip, which drives that new game console and is dubbed "supercomputer on a chip."

Source : here (http://www.reuters.com/article/technologyNews/idUST14243620070427?pageNumber=3)

[kaphwan]

It looks like he is now Senior Technology Advisor to Stringer. This is where he belongs, as he is a genius in such matters.

Good news, all-up.

[NeoPlayStation]

Eurogamer have posted a tribute (http://www.eurogamer.net/article.php?article_id=75805&page=4). I think the summary most apt.

The sad part of this tale is that Kutaragi will almost certainly be remembered more for his Crazy Ken moments than for the immense, lasting impact which he had on the videogames industry. He risked his career time and time again to pursue his belief that Sony should enter this industry, and was willing to put his own neck on the line in pursuit of a dream - perhaps not the dream of mass-market gaming, but at the very least, the dream which ultimately led to mass market gaming being a reality.
Kutaragi is not only the Father of PlayStation, but the father of modern console gaming. His fall from grace has been rapid, shocking, and yet almost entirely of his own making; an engineer at heart, he was ill-equipped to deal with the executive world which he tried to conquer. However, his contribution to this industry, and this medium, is undeniable...

The original playstation was the reason why I came back to videogame world. I didn't bought a console since ATARI. But the Playstation's games, the marketing, the very rich game graphics, the immersion, the "not a toy" approach changed my mind. So, I'm a gamer again because "KK put his own neck on the line" and make your dream our dream.

Kutaragi-san. Thank you very much.

[LiquidEagle]

Okay, let's just stop talking about this. Soon we're going to see "Good night, sweet prince" as if Kuturagi's dead or something. People are already under the impression that he's leaving the company or getting fired! Game Informer titled their article on the matter "The Father Of The PlayStation Ken Kutaragi To Retire In June" which really doesn't let people know he's just moving positions! This isn't a big deal and we don't need to say we'll miss him or anything because he'll still be around! Even if Kutaragi was moved to a position where he can't mess things up, this isn't the first time that's happened to him so don't even think it's the end of the world, or even a bad omen for PS3 in the least. Just chill.

[NeoPlayStation]

Exclusive: Outgoing Sony exec Kutaragi already planning PS4 (http://www.eetimes.com/news/latest/showArticle.jhtml?articleID=199202196)

Kutaragi said he previously turned over to Sony's PS3 design team his vision for reducing costs along with design models extending about two years into the future. "Now I'm ready to start working with a much wider world," Kutaragi said.

The outgoing Sony executive said he will maintain an amicable relationship with Sony, but added that future projects will be largely independent of Sony.

[VG Aficionado]

Nice to hear something from the man himself instead of sensationalistic crap trying to bury him alive!

In an exclusive interview with EE Times, Kutaragi said: "As a matter of course, I have the vision of Playstation 4, 5 and 6, which will merge into the network."

Creating a new world on the network is the next challenge Kutaragi has in mind, following the desgin and development of computer entertainment on the Playstation. "The design concept of the Cell processor is the network processor," he stressed. When the PS3 was introduced last year, Kutaragi said the network environment was not ready for a net-based game console.

"Now it has become possible, so why not enter?" he said.

[n1n9tean]

1up just posted an entirely disrespectful post on Kutaragi. The guy who posted it seriously needs to be fired.

This kind of shit is disgusting. Then, you have all these idiots just casually going along in discussion like "oh, of course this means PS3 is dead; an official failure." and then they look around for support "We can all say that comfortably now, right? PS3 never had a chance? Agreed?" and unfortunately they get that support from people just like themselves, "You feel as good as I'm feeling right now? Let's jack each other off to celebrate this monumental event in history.--*wank>, <knaw, wank>, <knaw* *harmonious ejaculation*--Your hands were cold and scaly but thanks anyway. I enjoyed it no less...."

assholes. shitheads. RAT-BASTARDS. fanboys. neanderthals. femmebots. lice. brown-noses. ass-kissers. I could go on......

[VG Aficionado]

1up just posted an entirely disrespectful post on Kutaragi. The guy who posted it seriously needs to be fired.If his article gets many hits, he'll probably be promoted. Those are 1crap's values.

[Domination]

I don't see how this topic is still going. It was clear from the start that he was promoted and didn't resign from Sony corp.

Exclusive: Outgoing Sony exec Kutaragi already planning PS4 (http://www.eetimes.com/news/latest/showArticle.jhtml?articleID=199202196)


This much is interesting. Regardless of his moving up, it seems his vision will still prevail.

[gozirah]

Exclusive: Outgoing Sony exec Kutaragi already planning PS4 (http://www.eetimes.com/news/latest/showArticle.jhtml?articleID=199202196)

Cool! Playstation 4, 5 and 6!

Kutaragi is now free to focus on vision, rather than the rat-race of launching.

[Sypher]

So wait? Was he promoted or what?

[SleazyBig slim]

CNN claims Ken stepping down is bad news.

"Where Sony went wrong
It's a sad coda for Ken Kuturagi, the creative genius behind Sony's videogame consoles. He's stepping down at a time when rival Nintendo is teaching its rival important lessons about consumers, writes Business 2.0's Chris Taylor.
By Chris Taylor, Business 2.0 Magazine senior writer
April 27 2007: 4:45 PM EDT
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(Business 2.0 Magazine) -- Pity poor Ken Kuturagi. The creative genius behind Sony's videogame consoles -- the PlayStations 1, 2 and 3 -- announced Thursday that he would step down as CEO of the company's games division, which means his career there will end on a sour note, the sound of defeat.

As noted in the latest issue of Business 2.0 Magazine, the eagerly-anticipated PlayStation 3 has already lost this round of the console wars to its Japanese rival, Nintendo's Wii (See "Why Wii Won," May). Since late last year, when both consoles were released, the Wii has consistently outsold the PS3 in every major market.


Sony's PS3 is packed with costly gee-whiz features that turned out to be a drawback to consumers faced with choices.

Nintendo's Wii simple, elegant design and low price are two reasons it's consistently outselling the PS3.

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For Nintendo, the number 3 company in the videogames business, it's a David-vs.-Goliath turnaround. For Kutaragi's team, who ruled the roost of this industry for 12 years, it's a shameful final defeat.

"Father of PlayStation" says "Game over"
There are a number of lessons we can glean from this -- not just for the future of videogame consoles, but the future of consumer electronics. Decades from now, PS3 vs. Wii will be remembered as a cautionary business tale: how pride, politics, and an overabundance of technology can blind you to the simple truth of what consumers want.

Kuturagi chose to pack the PS3 with as powerful a technological punch as possible. It contains a 60 GB hard drive, a state-of-the-art graphics chip, and the ultimate electronic brain, the Cell processor. Developed by Sony (Charts), Toshiba and IBM (Charts, Fortune 500), the Cell is an amazing beast that can do seven tasks at the same time.

It also helped drive up the cost of the PS3 to $600, a record price for a console, and put Kuturagi's division in the red to the tune of $1.7 billion. The Wii cost just $250. (See correction).

For all that innovation in the PS3, one thing didn't change: the controller, that handheld mess of buttons so confusing to non-gamers. Sure, Kuturagi made it work wirelessly, which has no doubt saved the world from a few broken ankles and smashed glasses, but the controller itself looks identical to the one found on the PS2.

Why change something that is already installed in 200 million homes worldwide? Answer: because there are more people in those homes that don't play games, and hundreds of millions more homes to win over.

Nintendo's answer to Ken Kuturagi -- Mario Bros. creator and games world legend Shigeru Miyamoto -- knew this better than most. That's why he designed a revolutionary controller that is sensitive to motion, not button-mashing. Everyone knows how to swing a golf club or a boxing glove in a Wii game. You just swing the controller.

More from Chris Taylor on his Future Boy blog
Over at Sony, Kuturagi was too busy thinking about how to push the company's other technologies. The PS3 was to create a vast installed base for Blu-Ray DVD, one of the rival formats in the ongoing high-definition DVD wars. All well and good if you're thinking about buying a PS3 as a DVD player, but gamers complained that the speed of the Blu-Ray drive was too slow when doing what drives in consoles are supposed to do: load games.

Indeed, the PS3 may be the chrome-trimmed headstone on the grave of convergence. It has been a long-held, oft-stated dream of both Sony and Microsoft (Charts, Fortune 500), creator of the Xbox and the Xbox 360, that videogame consoles are little Trojan horses.

You buy them for the games, but once inside your home, they take over your life. They become the brains of your TV, your entertainment center, even your main communications device with IP telephony and chat functions. They converge all your technological needs in one box. (Microsoft, at least, didn't assume that we would only want to use its technology in this converged device; it allowed you to plug in your iPod to the Xbox 360.)

Nintendo took a different tack. When you buy a videogame console, the company says, you want to play games. Period. A console is not a Swiss Army knife. It makes sense to squeeze more functionality into your cell phone because you carry that device around everywhere. When it comes to the interactive fun box in your living room, however, it makes sense to simply make that more fun. If you want a DVD player, you'll buy a DVD player.

The Wii may not be the most powerful console ever built, but it is the smallest and lightest. Its chip is not faster than Sony's cell, but it does use less electricity. In short, it looks more like the future.

As Ken Kuturagi moves into the next phase of his career at Sony, as the company's senior technology adviser, he would do well to play a few games on the Wii, and consider how the lessons of this device can help drag Sony away from an even greater defeat.

(Correction: An earlier version of this story incorrectly stated that the Nintendo Wii costs $150. We regret the error. Return to story)."

I pasted the very last sentence as proof these idiots never know what there talking about. Folks please dont take investment advice from CNNmoney. You'd be one broke bastard.

http://money.cnn.com/2007/04/27/magazines/business2/sony_playstation.biz2/index.htm

[Raijin]

Can you use the quote tag please? ;)

[VG Aficionado]

CNN can STFU.

[Diresu]

CNN can STFU.

Agreed x 100

[Nameless]

CNN can STFU.

What do you expect media outlets to do with this news...
It's almost impossible to spin this news into good Sony news IMO.

[XboxEvolved]

I haven't read through all the post, as I don't have time to, but I find it interesting; I was having a conversation with frosty as to how they need to get rid of Kutaragi because his ideaelogies are outdated, and he needs to retire while he is ahead, much like Yamacuchi(sp) from Nintendo needed to (and did), and he finally has. I think it is good, and it won't hurt the company at all for him to just being given a figurehead seat where he does nothing. While investors may see it as a sign of weakness at first, so many people from Microsoft retired from the Xbox project middway through, and the Xbox is doing fine on it's own merits, just as I think the PLayStation 3 is. As for Stringer, I think he is the best thing to happen to Sony in quite sometime, and he doesn't have that "drunken college asshole" attitude that the rest of Sony has had for the past few years, he has a proven track record that well, the majority of Sony hasn't had for quite sometime.

[gibmonster]

Being an engineer just means you know the product...I don't think KK not becoming a CEO has much to do with his decisions as much having the experience or credentials (he's an engineer). Running a product division and a company are two different things, especially when a company is as global as sony. Otellini over at intel is pretty much the first CEO they've had that wasn't an engineer. He has an MBA.

There has been a growing market for managers recently giving companies more choice who to appoint.

[gibmonster]

CNN claims Ken stepping down is bad news.
I pasted the very last sentence as proof these idiots never know what there talking about. Folks please dont take investment advice from CNNmoney. You'd be one broke bastard.

http://money.cnn.com/2007/04/27/magazines/business2/sony_playstation.biz2/index.htm


Couldn't agree with you more. Go to a financial services company. And know that there is a lot of variance in the numbers and opinions financial analysts put out. For one thing they often adjust figures without publishing how or why. Getting the numbers right and figuring out what they do and don't say is something even people with an appreciation for numbers can't get right all the time. Don't even get me started on "marketing analysts" (wtf? the ppl who didn't weren't good enough at statistics to major in something else are calling themselves analysts now?)

[LiquidEagle]

That CNN article isn't worth commenting on. I'm ready to see this thread get the lock treatment, personally. We've discussed it, and now it's just looking at the bad spin people are able to put on it. It happened, and it really doesn't matter what our theories are -- it's not the first time Kutaragi's shuffled positions and he's not leaving, and this isn't any kind of omen.

Cheers :)

[Black Dragon37]

Charting the rise and fall (http://www.gamesindustry.biz/content_page.php?aid=24620) of Ken Kutaragi.

Rise and fall? :wtf:

[Applefiend]

http://ps3.qj.net/Satoru-Iwata-We-d-love-to-have-Kutaragi/pg/49/aid/90758

Now, who would have thought it?

According to the German gaming site GameFront, the Nihon Keizai Shimbun has released a report about a press conference which has just been held by Nintendo. As most press conferences go, the Nintendo officials spoke about upcoming game titles, the financial gains of the company, movements and plans in general. However, one simple statement from Nintendo President Satoru Iwata made the event a whole lot more exciting.

According to the Japanese newspaper, Iwata stated that they "would love to see Kutaragi join up with Nintendo".

Now, this may generate a lot of reactions, but then again, how this will all develop would be nothing short of interesting. After all, Kutaragi's honorary position at Sony isn't exactly a very active office, and The Father of Playstation has also stated in recent interviews that his next ventures would mostly be independent from Sony, so there MAY be a good chance that he'll take Nintendo up on his offer. After all, it cannot be denied that Kutaragi has a long history with Nintendo, since he IS the guy who gave the SNES the gift of sound, via the SPC700 chip which he designed.

However, considering the fact that Kutaragi was also once badly slighted by Iwata's predecessors (think: Hiroshi Yamauchi, CES 1989, and a botched Play Station announcement... note the space in between "Play Station"), one can't really tell what Crazy Ken will do next.

[masteratt]

Kutaragi wants the best of the best, he is a true engineer who loves to create Gods of technology and Nintendo wants innovative, fun cheap stuff.

They both got different mindsets but if the move does happen, it'll be very interesting to see what Kutaragi contributes to Nintendo.

[LiquidEagle]

Jesus Christ can we lock this madhouse now? These rumors are the stupidest things I've heard in awhile.

[Viano]

indeed.

[Cless]

A very well written article by eurogamer about Ken Kutaragi.

http://www.eurogamer.net/article.php?article_id=75805&page=1

Highlight of the article IMO

The sad part of this tale is that Kutaragi will almost certainly be remembered more for his Crazy Ken moments than for the immense, lasting impact which he had on the videogames industry. He risked his career time and time again to pursue his belief that Sony should enter this industry, and was willing to put his own neck on the line in pursuit of a dream - perhaps not the dream of mass-market gaming, but at the very least, the dream which ultimately led to mass market gaming being a reality.

Kutaragi is not only the Father of PlayStation, but the father of modern console gaming. His fall from grace has been rapid, shocking, and yet almost entirely of his own making; an engineer at heart, he was ill-equipped to deal with the executive world which he tried to conquer. However, his contribution to this industry, and this medium, is undeniable. It's a sad fact that many people are remembered for their big mistake, rather than their many achievements - Gunpei Yokoi is still perhaps best known for creating the Virtual Boy, rather than the Game And Watch, the Game Boy or the ubiquitous D-Pad.

Kutaragi will never be loved like Miyamoto; he leaves no legacy of instantly recognisable characters and franchises, and his showmanship was always outspoken and arrogant, rather than humble and playful. However, we can hope that in a few years time, when the dust settles on the controversy surrounding the PS3, Kutaragi will be remembered not for the Emotion Engine or jacking in to the Matrix; not for working overtime to afford a PS3 or for the Xbox 1.5; but for having the courage to fight Sony's own management to create a console called the PlayStation, without which many of us simply wouldn't be reading a games website, and for the countless hours of enjoyment people around the world have had with his creations.

Ken Kutaragi will always have my respect.

[Viper]

http://ps3.qj.net/Satoru-Iwata-We-d-love-to-have-Kutaragi/pg/49/aid/90758

Interesting though I've heard similar comments made for decades regarding the desire to have 'insert name here' work for their 'insert company here' but nothing ever materializes from it.

[Diresu]

I can almost guarantee he won't go anywhere else especially not Nintendo. Also he is still the senior technology advisor for Sony or whatnot.

Not to mention that his vision involves top hardware and a step towards a total network...both things that Nintendo completely doesn't care for especially this gen.

[CrumCon]

Does this mean Ken would never be involved in the future Playstation hardware project?

[LaLiLuLeLo]

no.

[Black Dragon37]

A very well written article by eurogamer about Ken Kutaragi.

http://www.eurogamer.net/article.php?article_id=75805&page=1

Highlight of the article IMO



Ken Kutaragi will always have my respect.Already posted here. (http://forums.e-mpire.com/showpost.php?p=1507662&postcount=110)

[curryking1]

Eurogamer has the best writers (or many of) in the videogaming world, what more can you really say? Great article I guess lol.

[jaxmkii]

CNN can STFU.

why where at it...

They should STFU when it comes to news in general.

[mario25]

I'm very confused...Is he leaving sony like he resigned or got fired?, or he was moved to another role?

[Sephiroth_VII]

Moved to an honorary role, which means that he will have way less influence...

[Red_Eyes]

With Stringer running Sony, I am not worry.

[Diresu]

IDC analyst backs Sony from Kutaragi rumors

An IDC analyst has criticized media who have suggested that Ken Kutaragi’s retirement from Sony is some kind of punishment for PlayStation 3’s launch performance.
Billy Pidgeon wrote in a new report, “The popular press scenario [which] casts the PS3 as Sony's folly has journalists suggesting that Kutaragi's retirement is a dressing down for a failed PS3 launch. IDC believes this is a facile, myopic perspective. The negative on the PS3 is that the console is a late bloomer.

“IDC believes that Mr. Kutaragi's considerable talents are needed behind the scenes developing next generation technology rather running a business unit. Kaz Hirai is the best choice for executing the strategy and tactics to turn on PS3's afterburners."

Pidgeon continued to say that the PS3 is “ahead of the market, like its predecessors [PS1 and PS2].” He suggested that the Xbox 360 and Wii were designed for “immediate market impact,” whereas IDC believes the PS3 won’t really come into its own until a “steep uptake” occurs in 2008.

Pidgeon said software such as Lair and Heavenly Sword along with the PlayStation Home online service will push the PS3 to new heights.

Sony Computer Entertainment announced last week that its CEO (a.k.a. “The Father of PlayStation”) Kutaragi would be retiring from his executive management position in June.

Current division president and group COO Kaz Hirai will be taking the helm of the PlayStation business.

[LiquidEagle]

Wow, an analyst I agree with (at least in that quote)!! I believe he's 100% right too.

[Diresu]

Wow, an analyst I agree with (at least in that quote)!! I believe he's 100% right too.

Yea I said the same exact thing, lol...

[VG Aficionado]

Pidgeon continued to say that the PS3 is “ahead of the market, like its predecessors [PS1 and PS2].” He suggested that the Xbox 360 and Wii were designed for “immediate market impact,” whereas IDC believes the PS3 won’t really come into its own until a “steep uptake” occurs in 2008.I have to agree.

[Black Dragon37]

Where to next for PlayStation (http://www.gamesindustry.biz/content_page.php?aid=24746)?

Following last week's announcement that long-serving Sony Computer Entertainment boss Ken Kutaragi is retiring, much attention has been focused on his past achievements and on the corporate machinations which led to his retirement.

This is, of course, perfectly justified. The man dubbed as the "Father of PlayStation" is one of the most important and influential figures in the history of interactive entertainment. His legacy is immense; he entered an industry which catered to children and a niche, geeky audience, and leaves behind one which is a mass-market, fully accepted form of media to almost anyone under the age of 35.

However, there's a more immediate question to be considered as well - namely, what the repercussions of Kutaragi's retirement will be for Sony itself in the near term, especially in light of the uphill struggle the company still faces with the PS3.

Taken in that context, the significance of this retirement is interesting. It's widely accepted that Kutaragi did not retire voluntarily - to do so at his age, given that he has worked at Sony for his entire adult life, would be almost unheard of in Japanese business. Equally, the suggestion that he was retired as "punishment" for the enormous overspend and delays to the PS3 seems likely to be true only in the broadest sense.

No, Ken Kutaragi's retirement has to be considered as an offering to shareholders who are understandably upset that the hugely expensive PS3 has failed, so far, to look like the all-conquering platform Sony had hoped for. It is, essentially, a head on a plate; the long-established Japanese tradition of an executive being helped to fall on his sword to placate unrest among investors.

Such placatory gestures are limited in their effectiveness, however. Removing Ken Kutaragi will only be an effective move if it can be accompanied by clear steps to improve the market standing of the PS3. In terms of the PlayStation business, it's not Kutaragi's retirement that counts - it's what Sony does to capitalise on it.

As to what that may be, it's not easy to say. It's arguable that the two biggest problems facing the PS3 in the market are its price point and the lack of compelling new software - with the dark horse being the Blu-Ray question.

The price point would be hugely expensive to fix, but at least it could be remedied quickly; new software takes a long time to develop, and existing titles in development can't be speeded up without risking their quality. Blu-Ray, meanwhile, could win many new consumers over to PS3 if it can effectively demonstrate that it is the clear winner of the next-gen DVD format war, but such a demonstration is probably a year away. It's also a Catch-22; the success of Blu-Ray may be predicated on the success of PS3, which means that it's unlikely that the reverse can also be true.

Looking at it objectively, it seems likely that Sony will opt to remedy the price point before any other aspect of the console's problems. In fact, we've previously speculated that Kutaragi's own plan for PS3 may have seen rapid discounting of the price once Blu-Ray was established in the market, since the bulk production of BD-ROM drives would drive the production costs of the console down extremely quickly. Sony may choose simply to accelerate that schedule and take a further financial hit.

The irony is that while from a western perspective, or a gamer's perspective, Sony needs to catch up and compete effectively with Microsoft's Xbox 360, the investors that such a move would be aimed at placating probably don't care greatly about the Xbox. They are likely to be more concerned with the Wii, whose vast Japanese and international success throws the difficulties facing the PS3 into stark relief. Even at that, however, Nintendo is not the company which keeps Sony investors awake at night.

The fact is that it's Sony's own legacy that Sony has to compete with, more than anything else. As far as investors are concerned, PS3 faces tough comparisons not with the Xbox 360, or with the Wii, but with the PlayStation and PS2.

If Sony loses some market share, it doesn't actually matter that much to the stock market - as long as it gains in terms of overall business, by grabbing a smaller portion of a much larger market. PS3's sales curve will be judged not by the point at which it overtakes the Xbox 360, or how it matches the Wii, but rather by how it stacks up compared to the sales curve of historic Sony products.

Sony knows this, and it knows that right now, the biggest barrier is price. Software, although not entirely healthy at present - the system unquestionably has far too many Xbox 360 ports, and the big exclusive titles are a little too far in the future - will almost certainly sort itself out given time. Kutaragi's departure leaves SCEI in the hands of people whose primary focus has always been software, and both the work of Worldwide Studios and of the company's third-party partners will almost certainly fill in a compelling software line-up, given time.

Price, however, won't fix itself - and can be fixed now. In part, a financial hit is required; but we also sense that the decision to package the European PS3 in a cheaper chassis and remove the Emotion Engine and related components from the motherboard probably wasn't one which sat well with Kutaragi's perfectionist engineer's mentality. Rather, we suspect that other forces within Sony and SCEI had a hand in that cost cutting measure - and wonder just how much leeway for price slashing the firm opened up for itself by such a move.

We'll leave the speculation over exactly how much Sony could cut off the PS3's price to the analysts - but certainly, it's hard to see the console arriving at Christmas 2007 at its current price point. Kutaragi's retirement will win enough goodwill from investors to enable the company to make a tough financial decision on price cutting - and removes a major barrier to cutting corners and slashing costs on manufacturing. In their desperation to match the success of consoles past, we doubt that either of those considerations has escaped Kaz Hirai and the other executives whose hands are now on the tiller of the PlayStation business.

[jaxmkii]

How come no one made a big deal when Bill gates retired?

[gozirah]

Black Dragon,

Thanks for the article, but I am afraid I have to give it a "meh". I think it is speculative both on the workings of Sony and Japanese culture.

[Black Dragon37]

How come no one made a big deal when Bill gates retired?Because his company already has the monopoly in the OS market, and show no signs of slowing down.

[OmniCloud]

Good read..both of em.

It will be tough for PS3 to repeat PS2's success...But maybe, just maybe Sony has found some tech where they don't have to rewrite and remaster the innards in another 6 years...

PS4 will likely be an upgraded PS3 and not a completely different beast. If that's the case, then this is more like the original PS1 launch than PS2. Sony has to establish it's console again. Through Software, through interactivity, and through online...

A bit tougher, but I agree that X360/Wii were bought designed for immediate impact, while PS3 is just for early adopters until PS2 sells dry out.

The end of this year should be interesting with a bunch of great games coming out for all systems and Sony releasing some of there ambitious software like Home...

Software is coming, the Price has to drop, and Sony has the largest studios of all three consoles, what's the problem here:huh:

Oh I see it, Sony isn't completely crushing the competition on day 1 and doubt/uncertainty fills the net. I'm guilty of it too, but I couldn't be happier with my PS3 w/hardly any software for it, that has to be a good sign...

[Segitz]

Yes, the CELL is much more than what it is now.

It will grow into many other markets and eventually into the PS4 as CELL2 or 3.

Then, Sony wont have any problems a) bcing the PS3 and b) learning the devs into the system and c) making dev tools from the ground up...

I hope, Sony will do so^^

[VG Aficionado]

Well, today is the day:

http://news.yahoo.com/s/ap/20070619/ap_on_hi_te/japan_sony;_ylt=As8hwTvMN_I8BN58JkXIiSgE1vAI

The end of an era. What is coming next? Don't miss Sony's E3 conference on July 11! (22 days left)

[VideoGame mania]

WAsn't he fired during PS2 era then he came back to Sony ?

[VG Aficionado]

Not at all. Demoted at most, never fired.

[Coded-Dude]

:cry2:

[user friendly]

If it wasn't for Kenny there may have not even been a Playstation, or at least it may not have turned out to be such a good name brand.