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Gadgets Ken Kutaragi Leaves Sony
Brandon Hill (Blog) - June 19, 2007 1:59 PM
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Ken Kutaragi retires from Sony

It was announced in late April that Ken Kutaragi, 56, would be leaving his position as Chairman and Group CEO for SCEI -- a position he "demoted up to" in November 2006. Kutaragi, who been labeled the "Father of the PlayStation," was the driving force behind the PlayStation brand.

Kutaragi's major troubles began during the development of the PS3. Kutaragi's heavy-handed control of the console's development resulted in the high cost of the machine. Kutaragi was also notorious for not keeping co-workers or his superiors abreast of problems that crept up during development -- namely Sony CEO Howard Stringer.

Today marks the end of the road for Kutaragi. Kutaragi retired from Sony and handed his duties over to Kazuo Hirai. Kutaragi will still hold an advisory post for Sony's gaming division.

Kutaragi's lasting legacy, the PlayStation 3, is still facing an uphill battle. Although the Blu-ray disc format that the PS3 made popular is beginning to gain some traction, the console itself is still lagging behind its chief rivals.

For the month of May, Nintendo sold 338,000 Wiis while Microsoft sold 155,000 Xbox 360s. Sony's PS3 brought up the rear of the pack with 82,000 units sold -- less than that of its PS2 predecessor with 188,000 units sold.

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So long
By umeng2002 on 6/19/2007 2:13:37 PM , Rating: 5
“The PS3 is not a game machine“

“The PS3 will instill discipline in our children and adults alike. Everyone will know discipline.”

“Microsoft shoots for the moon. Sony shoots for the sun.”

PS3 is “for consumers to think to themselves ‘I will work more hours to buy one’. We want people to feel that they want it, irrespective of anything else.”

-Ken Kutaragi




RE: So long
By Brandon Hill (blog) on 6/19/2007 2:16:21 PM , Rating: 5
"For instance, is it not nonsense to compare the charge for dinner at the company cafeteria with dinner at a fine restaurant? It's a question of what you can do with that game machine. If you can have an amazing experience, we believe price is not a problem."

-Ken Kutaragi


RE: So long
By Pitbulll0669 on 6/19/07, Rating: -1
RE: So long
By FITCamaro on 6/19/2007 2:25:56 PM , Rating: 5
While I won't comment on his being good or bad for Sony, what the f*** does it matter if he was gay. I don't know if you were joking or serious with that comment but what exactly does anyone's sexual preference have to do with their ability to work?

I'm not a huge supporter of all the gay rights movements (quite the opposite in fact) but I have no issues with gay people personally. Most of the gay guys I've known were extremely cool and quite the same as any other guy. At my last job one of the coolest guys there was gay.

Stop being a bigot and get your head out of your ass.


RE: So long
By KristopherKubicki (blog) on 6/19/2007 2:40:55 PM , Rating: 2
He's not gay anyway. In his exit memo he talked about spending more time to play golf with his wife.


RE: So long
By Master Kenobi (blog) on 6/19/2007 2:50:58 PM , Rating: 5
Wii Golf perhaps?


RE: So long
By mdogs444 on 6/19/2007 2:53:04 PM , Rating: 2
I thoroughly enjoyed that comment!


RE: So long
By andylawcc on 6/19/2007 3:09:10 PM , Rating: 2
lol.
I wonder does this guy has another not-Sony in his house.


RE: So long
By encryptkeeper on 6/19/2007 5:04:09 PM , Rating: 4
Kutaragi can be an unlockable character in Super Swing Golf 2.


RE: So long
By FITCamaro on 6/19/2007 3:02:32 PM , Rating: 2
My point was that it was an unnecessary comment.


RE: So long
By tdawg on 6/19/07, Rating: -1
RE: So long
By encryptkeeper on 6/19/07, Rating: -1
RE: So long
By tdawg on 6/19/07, Rating: -1
RE: So long
By Clenathan on 6/19/07, Rating: -1
RE: So long
By encryptkeeper on 6/19/07, Rating: -1
RE: So long
By knowyourenemy on 6/19/07, Rating: -1
RE: So long
By StevoLincolnite on 6/20/07, Rating: -1
RE: So long
By nidomus on 6/20/07, Rating: 0
RE: So long
By ADDAvenger on 6/19/2007 7:41:44 PM , Rating: 3
The idea is this: legal marriage is not a right, we're not talking about the first amendment here.

Yeah gay folks can do what they want with each other, the real argument isn't over that, it's about whether or not what gay people do together is productive to society and worth the incentives that traditional marriages get.

Traditional marriages have incentives because such marriages produce kids, married couples are a more stable and better environment (think how most single parents are poorer than marrieds of the same age etc) to raise said kids than the single-parent route, and that's the way western society has been for at least a thousand years and it has worked well thus far. Gay marriages aren't put down legally, they're just not elevated either.

And what does this have to do with Kutaragi?


RE: So long
By Caligynemania on 6/19/07, Rating: -1
RE: So long
By StevoLincolnite on 6/20/07, Rating: -1
RE: So long
By tdawg on 6/20/07, Rating: -1
RE: So long
By tdawg on 6/20/2007 2:35:52 AM , Rating: 1
Wow, I sure hope I was rated down for straying off the topic and not for wanting all humans to be treated equally. :(


RE: So long
By Pitbulll0669 on 6/19/07, Rating: 0
RE: So long
By nidomus on 6/20/2007 11:55:29 AM , Rating: 2
Gay has more than one meaning... perhaps he meant he was overly happy?


RE: So long
By mdogs444 on 6/19/2007 2:29:31 PM , Rating: 1
That statement was entirely uncalled for.

Im not gay, and I may not agree with gay rights movements and activists, however that should not be a consideration when its comes to someones career and ability to work.

Comments like that are terrible.


RE: So long
By jmn2519 on 6/19/2007 3:15:29 PM , Rating: 5
Please people, don't feed the trolls.


RE: So long
By tdawg on 6/19/07, Rating: 0
RE: So long
By OxBow on 6/19/07, Rating: -1
RE: So long
By XToneX on 6/19/2007 3:10:31 PM , Rating: 2
Why does this guys have a rating of 0, when others who post things that have significance to topics with true facts get negative ratings?
It's a shame that the PS3 came out the way it did. Hopefully some developers get on the ball and make some great games for it, but there's still the issue of cost for the system itself.


RE: So long
By FITCamaro on 6/19/2007 4:22:34 PM , Rating: 3
I like how I got rated down for calling the guy an ass for his inappropriate comment.


RE: So long
By AstroCreep on 6/19/2007 3:33:47 PM , Rating: 2
quote:
Guy was bad news fromn the start

Even though he was the man who dreamed up the original PlayStation and PS2, right? Those ideas were certainly 'bad news' and a huge waste of Sony's time and money...
(Won't even touch the 'gay comment'. :p)


RE: So long
By SiliconAddict on 6/19/07, Rating: -1
RE: So long
By jarman on 6/19/2007 10:48:01 PM , Rating: 2
Wow, the PC nazis are out in force tonight!


RE: So long
By qrhetoric on 6/20/2007 12:48:50 PM , Rating: 2
The nazis were not very PC I can assure you. They didn't just bash gays, they gassed them.


RE: So long
By jarman on 6/20/2007 7:55:29 PM , Rating: 2
... please continue your post so that it either makes sense or is relevant.


RE: So long
By FITCamaro on 6/19/2007 2:29:56 PM , Rating: 5
quote:
“The PS3 is not a game machine“


Therein lies the problem with the PS3. They entered the next gen games console race with a product even they didn't view as one.


RE: So long
By walk2k on 6/19/07, Rating: 0
RE: So long
By Master Kenobi (blog) on 6/19/2007 4:58:16 PM , Rating: 5
In the corporate world they call it retirement on the high ups. Reality is that they told him to get out, and by "Retiring" everyone "Saves face" and all is good from a Political Correctness standpoint. Cut and dry they told him his number was up, get out and heres a compensation package.


RE: So long
By Oregonian2 on 6/19/2007 7:21:16 PM , Rating: 3
Yes, he was 'axed' a year or two ago when "promoted" away from his previous position. He just was slow to take the hint, or maybe the hint was recently made behind the scenes more forcefully. He had been undercutting the authority of the head honcho guy and doing things unilaterally himself, surprising those above him. Not a wise move unless you win really big as a result of doing it.


RE: So long
By akugami on 6/19/2007 9:49:39 PM , Rating: 2
And in case anyone doesn't know it, in Japan, you are "promoted" into a position where the title looks nice but your powers are effectively taken away from you.

Just ask Gunpei Yokoi about what happens when your latest product ends in a big fat failure. A man who, probably moreso than Miyamoto, made Nintendo what it was. Some of his design philosophies still dominate the Nintendo culture.

http://en.wikipedia.org/wiki/Gunpei_Yokoi


RE: So long
By encryptkeeper on 6/19/2007 5:21:07 PM , Rating: 4
Wow. So basically, at 56, Kutaragi is due to retire. Do you actually think that if the PS3 were doing well you'd hear him mention retirement? You might be interested in reading this (I checked, there aren't too many big words:

It seems that Japanese employers have devised a system of staged retirement--partial at 60, with an appropriately small pension because the employee is continuing to work, albeit at a reduced salary to reflect his reduced productivity, and full at (about) 69.

Now, the fact that you are completely stupid isn't in question here. But as tempting as it is to tell everyone, you should resist the urge. Or even better, try and be KNOWLEDGEABLE about what you're saying!


RE: So long
By walk2k on 6/19/2007 6:02:59 PM , Rating: 1
I see... so according to you, mega-millionares don't ever retire early in Japan?

Mmmmkay. Well in case anyone else is curious here's what they actually said (don't be afraid of the big words):

quote:
"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.”
Oh yeah, that sure sounds like he was fired huh?

By the way the PS3 is doing just fine. It is approaching 4 million sold and there aren't even many "killer" games for it yet. It has outsold the 360 during the same time period, and that system didn't really take off until some great titles came out like Gears of War, etc.

It has also single-handedly won the format war for Blu-ray (just ask Blockbuster) in case you'd been living in a cave....


RE: So long
By mdogs444 on 6/19/2007 6:12:49 PM , Rating: 2
quote:
I’m looking forward to building on this vision in my next endeavors.


This tells me he is planning on doing something AFTER Sony, no? Meaning, his next job. He said he is "graduating", not "retiring".

quote:
By the way the PS3 is doing just fine. It is approaching 4 million sold and there aren't even many "killer" games for it yet. It has outsold the 360 during the same time period, and that system didn't really take off until some great titles came out like Gears of War, etc.


You are obviously misinformed. The PS3 was dead last is sales last month, losing out to the 360 by almost a 2:1 margin.

quote:
It has also single-handedly won the format war for Blu-ray (just ask Blockbuster) in case you'd been living in a cave....


Just because Blockbuster chose to stock Blue Ray only, does not mean that Blue Ray is now the format of choice for the industry. In fact, I dont think anyone really cares who wins, or even if no one wins. Sales of High Def DVD's compared to standard DVD's is not even close. People will be buying standalone players that cover both formats, and will be able to rent either one, as well as purchase whichever is cheaper.

In my opinion, you need to start doing a bit more research to entire story, rather than being biased one way. That will get you no where.


RE: So long
By akugami on 6/19/2007 10:06:21 PM , Rating: 3
Sounds a heck of a lot better than "They promoted me to a desk job pushing papers from one end of the desk to the other and back. I got bored and am leaving."

It's also a good idea not to burn your bridges since, much like the late and great Gunpei Yokoi he'll be involved in video games again and his contacts within Sony would be likely to give him a helping hand realizing any projects. After proper review of the product of course.

The PS3 is not doing just fine. Doing just fine would mean it's selling out or close to selling out. Heck, just hitting the drastically scaled back numbers predicted by Sony. This is hardly the case. It's a good thing the PS2 and PSP is propping up up Sony's gaming division. On the PSP, the Nintendo DS is beating the stuffing out of it but at the same time, it's doing pretty good. Especially compared to every other competitor to Nintendo's deathgrip on the handheld market.

The HD format wars, in case anyone outside of videophiles actually cared, will not be won for at least another year and more. HD-DVD still has as good of a chance as Blu-Ray of winning. Never underestimate those cheaper $300 HD-DVD players compared to the $500 Blu-Ray players. Hi-Def discs make up only a very minor percentage of overall movie sales.

I'm not predicting that Blu-Ray will lose, I'm just not a fanboy nor am I naive enough to think that it already has the battle won.


Another sales question
By mdogs444 on 6/19/2007 2:40:12 PM , Rating: 3
What do you think the impact on the PS3 was seeing how Sony is continuing to sell the PS2?

Microsoft discontinued the original Xbox when the 360 was available, thus making people by the 360 if they wanted a microsoft gaming machine. Sure, the price points much much closer together: $199 vs $299/399 as opposed to Sony's $129 vs $599...

By continuing to sell the PS2, I think it was a very positive effect on Sony because people would have bought the Wii or 360 as opposed to spending $500 more for the PS3. When Microsoft discontinued the original Xbox, it was the right time to do so because no other systems were available in price range besides PS2 and you could get a nex gen system for an additional $100, as opposed to several hundred dollars.

But do you think it had any negative or positive effect on Sony?




RE: Another sales question
By FITCamaro on 6/19/2007 3:05:56 PM , Rating: 2
Maybe a little. With how quickly PS2s are still selling, theres still new games coming out for the PS2. And why spend the development cost for a PS3 game just to have better graphics when you could make a game for the PS2 far cheaper and have a far larger installed user base.


RE: Another sales question
By darkpaw on 6/19/2007 3:27:27 PM , Rating: 3
MS had to kill the Xbox1, they were taking a bath on the component prices since they didn't own the designs to the processor or gpu. They couldn't just shrink everything down like Sony could with the PS2 and make it for tons less.

MS wanted into the console game quickly, so they used Intel/Nvidia components and made some pretty poor contracts (especially with Nvidia).

From a business standpoint killing the xbox 1 was a nobrainer and Sony selling the PS2 still is also a no brainer. Sony is probably making $50-70 on every PS2 sold at this point.


RE: Another sales question
By luhar49 on 6/19/2007 4:32:54 PM , Rating: 2
I have a PS3 and am on my way to upgrading my computer.
After checking the prices of various components, I realised that a top of line Nvidia 8800GTX will cost me same as my PS3.
Thats just for a graphics card..which will lose half its value in an year and perhaps 80% in two.

I wonder why people never talk about the high prices graphics cards. After all they are also mainly serving the purpose of gaming.

After looking at these prices, I feel that PS3 is a bargain.
I can game and watch High Definition movies. Thats more value than the graphics card would ever give me.


RE: Another sales question
By darkpaw on 6/19/2007 4:51:15 PM , Rating: 3
Thats because most people are not stupid enough to buy a high end graphics card. The sweet spot has always been the middle of the pack, the high priced units cater to a very small market. Sony had a lower end offering on the PS3, but killed it cause it was costing them too much cash.


RE: Another sales question
By mdogs444 on 6/19/2007 4:54:14 PM , Rating: 3
The highest end graphics cards are just for bragging rights, we all know that. We know that you do not need an 8800GTX to play the current games out there. We also know you do not need a quad core or 4gb's ram either.

But to each their own.


Expected
By mdogs444 on 6/19/2007 2:20:31 PM , Rating: 2
Someone had to be said "Goodbye" to by Sony after the sales were not as they expected.

I knew it was bad, but even after more than a year on the market, I didnt realize that the 360 was still outselling the PS3 by a ratio of almost 1.9:1 (Not counting the release rush)

I assumed that the PS3 would remain low due to its extremely high price point, but that the 360 would drop down to about even with it given its problem and amount of time that its been on the market.

Is it safe to assume:

1. That people would rather take a chance investing $400 into something that has known issues, rather than $600 into something that is out of their price range?

or

2. People are not satisfied with the game selections of the PS3 as they are the 360?

or

3. People are not buying Blue Ray as the winning of the High Definition market?

or

4. People are not buying systems based solely on the new features that they offer, a middle road of features & price?

Im not trying to ask biased questions. I am not a fanboy of any system, in fact I do not own one. I had a 360 for a while, and sold it just because I dont have the time to play. Id like to try a PS3, but not at that price tag.




RE: Expected
By Gnoad on 6/19/2007 2:29:20 PM , Rating: 2
It's most likely a combo of 2 and 4. I think the lesson the console manufacturers learned this generation is that we are far more sensitive to price than they figured. Sony really put on the attitude that we will buy anything, regardless of price, as long as they crammed enough fancy new gimmicks into it. With money being tighter than ever for us, we simply can't spare that kind of money for a game console.

Combine that with a horrible selection of games for the ps3, and it's not surprising they are selling horribly.


RE: Expected
By Verran on 6/19/2007 2:40:37 PM , Rating: 3
Absolutely true! That's exactly how I see it. Sony thought they could use technical jargon to justify the high price, and it just didn't work. The PS3 may be $1000 worth of technology at a $600 price, but people still don't want to spend $600, so what's the point?

As to the #3 point: I don't think it's even a question of which has won. I think no one cares. All the tech-geeks are battling tooth and nail over HD-DVD vs. BluRay, but everyone else is just sort of taking a "meh" attitude towards it. HD content on either side is expensive, risky (during the format war), confusing (to most non-techies), and just generally not worth it. The public demand for HD content right now is still very low. People quote the sales numbers of HD-DVD or BluRay around here all the time, but combine them both and put them against regular DVD sales and it's a joke. People are not ready for HD content. Sony is banking PS3's "value" on a market that doesn't exist yet.


RE: Expected
By omnicronx on 6/19/2007 3:09:45 PM , Rating: 2
so true about the HD content.. people just dont care.
its not like going from vhs to dvd where the difference was night and day in sound and video quality, on any tv.
only so many people have high def capable, and theres only a handful of people out of that that have a tv with hdmi, which the ps3 requires to watch bd movies at high rez.

Are people really gonna go out and buy blueray discs of crappy movies and series they already have? i understand actions movies where every bit of detail can make it feel more real. but i dont hear my girlfriend complaining OMG THIS STUPID GILMORE GIRLS SEASON 6 SET JUST ISNT GOOD ENOUGH! I NEED HD QUALITY NOW!


RE: Expected
By FITCamaro on 6/19/2007 4:25:51 PM , Rating: 1
Not only that, but if you buy Sony's HDMI cable for the PS3, its $100. While anyone on here is likely smart enough to know you can go out and buy any HDMI cable and it'll work, many won't be. And you know the sales guys at Best Buy won't tell them that since thats a huge revenue item as it likely only costs them $30.

And thats the price I saw in Best Buy last weekend. I'm its cheaper online but most will be buying the console in a store.


RE: Expected
By mdogs444 on 6/19/2007 4:52:48 PM , Rating: 2
I would be utterly amazed if the HDMI cable even cost them $30.

Anything in which you can buy online for $6 - and that person is even making a profit....


RE: Expected
By FITCamaro on 6/19/2007 5:10:20 PM , Rating: 1
Well I mean it cost Best Buy that. Not Sony. It likely cost Sony $5. But they'll sell it to Best Buy for $30 to make a huge profit. And Best Buy will also sell it to you for a huge profit.

I worked at Best Buy. On some accessories they charge a 50-70% markup.


RE: Expected
By ajira99 on 6/19/2007 2:37:31 PM , Rating: 2
I think that you hit on the major points. I expect the gap between PS3 sales and the 360 to lessen as higher-quality titles become available for the PS3. Unfortunately (or not) for Sony, BR didn't become the main driving force for sales that they hoped for. I'll give kudos to Kutaragi for his contributions to the pre-PS3 console line, but the guy was totally whack during this generation.


The real problem is how sony acted
By psychotix11 on 6/19/2007 3:57:08 PM , Rating: 5
While the points on why the PS3 hasn't sold well are all good and valid there is another reason that hasn't been brought up yet... Sony has just pissed people off to much.

The PS3 was/is a Trojan horse for blu-ray and cell. That right there had me second guessing my purchase of it. Toss in exploding batteries, rootkits, idiotic comments thrown left and right, and they pretty much lost a sale. The removal of the PS2 hardware was just beating a dead horse.

The only games I really played on the PS2 were shooters/fighters. Which are honestly better on the actual arcade hardware, so no loss there for me.

Sadly I "should" have been the target market. I have the HDTV with HDMI in, 600 bucks on gaming/audio-video hardware is not that pricey in the scheme of things I've purchased over the past year, and I owned both the PS1/2.

But I won't buy it because they acted like idiots. At this point purchasing the console is sending the message that it's OK for a company to act like they did.

I know I'm not the only one in this boat. Most of my friends are in similar situations, and not a single one of them will buy the PS3 simply because of Sonys actions.

Removing Kutaragi is a start, but more heads need to roll and there need to be some formal appologies issued before I'll debate purchasing the PS4. PS3 is dead.




By mrteddyears on 6/19/2007 4:12:28 PM , Rating: 3
I totally agree, I was a total SONY person and now I will never touch a SONY product again thanks to the god awful way they treat the Europeans.

In case anyone from SONY is reading DT I have orderd my new 50inch Pioneer plasma with HDMI and will connect my WII via component.


By FITCamaro on 6/19/2007 4:30:35 PM , Rating: 2
I'll eventually buy a PS3. But not before the price comes down a lot. As much as I want to play MGS4 (as it now seems likely its not coming to the 360) and FFXIII, I'm not spending $600 to do so.


Ken
By yacoub on 6/19/2007 4:20:23 PM , Rating: 2
Ken's lovable like the Iraqi Information Minister who also said really absurd things.

I bet he was a real PITA to work with though, especially if he wasn't doing his duties and informing the right people about development problems and setbacks and generally pushed his way.




so long
By mrdeezus on 6/20/2007 1:45:12 AM , Rating: 2
It is obvious he was gay, in the picture,look how erect his finger is holding that controller?

lmao

Again, who cares anyway what he is he was very smart and look how much money he made sony with the ps1 and 2!! Good job ken!




heh
By Jcruiser89 on 6/21/2007 12:19:57 PM , Rating: 2
Ken Kutaragi went up against the largest console gaming company around at the time and won.....He created the psx and ps2, I dont care if he's gay or a vogon, the fact remains he's a legend.




Thanks Ken!!!
By Black Rainbow on 6/22/2007 2:01:29 PM , Rating: 2
I just want to say: thanks Ken, for developing the machine that gave me my most memorable gaming moments ever. I'm talking about the PS One, of course, which, as far as I'm concerned, is the platform for the greatest game ever: Final Fantasy VII. This is, in my humble opinion, seriously the best game ever made. Even though it may look a bit dated today, it has the story with the most depth that I have ever encountered, and brought me closer to crying than many a movie (because of the tragic events in the story, that is, not out of frustration).

Way to go Ken!!!




...
By IceTron on 6/19/2007 4:57:30 PM , Rating: 1
Don't let the door hit your ass on the way out




"Game reviewers fought each other to write the most glowing coverage possible for the powerhouse Sony, MS systems. Reviewers flipped coins to see who would review the Nintendo Wii. The losers got stuck with the job." -- Andy Marken

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