Ken Kutaragi to leave SCEI

[one]

He steps out of an executive position and becomes "Honorary Chairman" of SCEI and a senior technology advisor of Sony Corp. Kazuo Hirai becomes the new group CEO.
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 PlayStationâ€￾, 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,â€￾ 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.â€￾

“Ken Kutaragi is a rare combination of a powerful visionary and entrepreneur in one figure,â€￾ 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.â€￾

 

[Titanio]

There he goes..

Kaz has been very quiet lately. Surely we'll be hearing something out of him after this.

 

[Kryton]

Hasn't this been known for ages? He may not have officially moved, but it was announced that the move would go ahead?

 

[Brimstone]

Goodbye Kutaragi-san.

 

[Titanio]

Hasn't this been known for ages? He may not have officially moved, but it was announced that the move would go ahead?

His role was previously split into two, with Kaz taking on day-to-day management, while he retained a strategic/longer-term role. But this goes further, he now simply holds an honorary position with an advisory role to Stringer. Kaz is taking both roles now. Kutaragi is effectively retiring pretty much completely.

It had been mentioned by SCE with the last shuffle that Kutaragi would prepare the way for a new generation of management, but I'm surprised it has happened this quickly.

 

[one]

Hasn't this been known for ages? He may not have officially moved, but it was announced that the move would go ahead?

Probably coincided with the end of this fiscal year. Stringer is visiting Tokyo for the conference to announce the earning results.

 

[Carl B]

Hasn't this been known for ages? He may not have officially moved, but it was announced that the move would go ahead?

Kryton I don't know what you're talking about - which move?

But it's no surprise really... the clashing with Stringer and the operational rebuke with COO duties falling to Kaz; I think it's more than Kutaragi's pride could take. THis probably works out best for both men (Stringer and KK), and who knows, maybe their relationship will actually improve from here.

The techno-visions of Kutaragi are part of what lent the PS brand intitiatives the flavor to which I have been partial, and I wonder if the no doubt more conservative SCEI will lend itself to bold plays of vision and technology. Frankly, I lament his not having become CEO, let alone this... but I think it's no surprise at this point.

I wonder if Kutaragi will remain focused on Cell-related applications, or if his pursuits will take him elsewhere.

 

[ManuVlad3.0]

This make me remember when apple fired steve jobs

 

[Tap In]

Kryton I don't know what you're talking about - which move?

But it's no surprise really... the clashing with Stringer and the operational rebuke with COO duties falling to Kaz; I think it's more than Kutaragi's pride could take. THis probably works out best for both men (Stringer and KK), and who knows, maybe their relationship will actually improve from here.

The techno-visions of Kutaragi are part of what lent the PS brand intitiatives the flavor to which I have been partial, and I wonder if the no doubt more conservative SCEI will lend itself to bold plays of vision and technology. Frankly, I lament his not having become CEO, let alone this... but I think it's no surprise at this point.

I wonder if Kutaragi will remain focused on Cell-related applications, or if his pursuits will take him elsewhere.

I think he was referring to the "reshuffle" of duties back in November when many of us speculated that the writing was on the wall and it was strictly a PR move to save face. Add to that the recent WSJ article about Stringer's dissatisfaction and 5 mos of PS3 sales numbers there really is no surprise here.


Edit: November 06

 

[Carl B]

I think he was referring to the "reshuffle" of duties back in January? when many of us speculated that the writing was on the wall and it was strictly a PR move to save face. Add to that the recent WSJ article about Stringer's dissatisfaction and there really is no surprise here.

Oh I know what he was refering to - that's just the Socratic method in which I pursue discussions.

But no, the idea that Kutaragi would leave the company entirely has never been floated in official circles, and that's what I wanted to clarify. Granted, those that felt back then that Kaz's rise would be linked to an eventual ouster of KK were correct to think so (as today validates), but nothing to the extent was ever said to cue a post with the assurance/confidence of Kryton's.

Or rather, if this truly has been "known for ages," I didn't know about it - I'll put it like that.

 

[Tap In]

Or rather, if this truly has been "known for ages," I didn't know about it - I'll put it like that.

You're correct.

there is definitely a distinction between a solid hunch and factual information. Just that in this case they did not appear to be too far apart.

 

[Carl B]

Well anyway, didn't mean to jump all over you Kryton...

Just this news has me

 

[PatrickL]

Did he leave or is it a polite corporate way to be fired ?

 

[whatever7]

I hope he comes back after Stringer finish his run as CEO of Sony, which probably will take a few years.

 

[Carl B]

Did he leave or is it a polite corporate way to be fired ?

Without knowing more, it's probably a bit of both.

But with Kutaragi (and Japanese execs by tradition)... this isn't unexpected. As soon as someone in his position is essentially rebuked by losing the day-to-day, a move like this isn't unexpected. So, who knows how much is an overt firing, how much is behind-the-scenes manuevering, and how much is simply an amicable separation.

He almost quit the company when he didn't get the CEO position and was removed from head of electronics and semi in the reshuffle back two years ago, but Stringer begged him to stay and gave him guarantees of maintaining broad autonomy in gaming - oh the irony.

 

[22psi]

Watch MS snatch him up!

 

[PatrickL]

Oki, not knowing enough japanese corporate culture I was thinking that if KK was the one leaving he would make the announcement himself.

 

[patsu]

He steps out of an executive position and becomes "Honorary Chairman" of SCEI and a senior technology advisor of Sony Corp.

I hope it's more than words. I still don't trust Chubachi to deliver a long term technology roadmap that can make a strategic difference. At least Yutaka Nakagawa is adept in cost effective business operations and bringing up young engineers, Masa Chatani is busy pushing Cell in new domains. OTOH Chubachi has nothing to show yet. He sounded more like a "traffic controller" guy just to lay down and harmonize corporate processes.

Stringer should be able to obtain better technology advices from Kutaragi.



IMHO, the problem with Ken was he ignored consumer marketing practices, and went overboard with visions (Hence, cost). He may also be too hard-headed to create long term relationships with colleagues.

However there're no strict right or wrong in these areas (e.g., Marketing is not something that can be indoctrinated because it deals with changing consumer behaviour; Corporate culture can cut both ways). This time, timing is not on his side.



All in all, I admire Sony management's swiftness and decisiveness. With the recent layoff, it's only fair that Kutaragi take another hit for the group. Deep down inside, I think Sony still need Kutaragi's visions and relentless drive towards excellence.

EDIT:
I also hope that this opens the door for Sony to get rid of undeserving sacred cows in the organization.

 

[Johnny Awesome]

Great move IMO.

 

[Titanio]

Oki, not knowing enough japanese corporate culture I was thinking that if KK was the one leaving he would make the announcement himself.

I don't think that ever happens that an individual announces a retirement..

Assuming this was a normal retirement, he would give his notice to his superiors (i.e. an 'internal announcement' if you wish) and then, in situations like this where the person is very high profile, the company would announce it publically. Same way companies announce high profile hirings.