Ken Kutaragi to leave SCEI

[Carl B]

Was reducing Sony's investment in the silicon/semiconductor market also KK's decision? He lost his job in the semiconductor division around the time Sony decided to go with Stringer so this always confuses me.

Obviously that wasn't KK's decision - you could be quite sure the opposite would have happened had he remained. Kutaragi at the point of Stringer's announced ascension was the head of three divisions: gaming, electronics, and semiconductors. Now - him and the rest of the world thought he would be the next CEO, and obviously those three divisions formed nicely a synergistic environment from which to push his vision of a networked world with Cell at the center.

But... in a sort of supernova announcement, CEO Idei basically wiped out the established boardroom and put Stringer up for succession. He viewed it as sort of a final act of defiance to get out from under the shadow of Ohga (a big KK supporter). KK lost his non-gaming titles as well as his chair in the boardroom.

Anyway, the decisions we talk about in Sony semi today stem from post-KK leadership decisions, and you can see why from that moment in time the stage was set for clashes with Stringer on any policy that didn't align with the company goals Kutaragi had been working towards in his assumed work-up to CEO.

 

[infinity4]

it only looks good on paper right???

 

[function]

Well as already shown the sales spikes are directly related to the recent deals on Blu-Ray movies, although that wasnt really why i questioned what you said. The sales of nexgen format HD material as a whole, both Blu-Ray and HD-DVD, are still extremely niche compared to other formats, so calling anyone a winner of anything is really quite ridiculous. Even as cocky as Sony is they know this too so it wouldnt be directly related to this news.

I wasn't actually calling a winner if you look, I said that Blu Ray was "starting to win" (and it's not all an illusion created by special deals either). Things can, of course, change and there's still a long way to go.

My point was actually that people (and Sony) might forget (perhaps conveniently) the pressure that KK was probably under to use the PS3 to help secure the future of Blu Ray. It's kind of ironic that if Blu Ray succeeds, no-one will remember that the PS3 suffered for it, but if Blu Ray fails, it'll go into legend (perhaps unfairly) that it dragged the PS3 back with it.

 

[Darkon]

Mr. Kutaragi will be missed.

Seriously, I think Sony will be missing something without his leadership. He may have been considered crazy etc by many (jokingly, including myself) but anyone with any sort of appreciation for technology would be a fool not to recognize his contributions to the field. I would have liked to see him refocus his designs more ps1-like than ps2 though (easy to develop for and maximize) and perhaps new management will refocus their efforts in this direction. Still, it is sad to see the man who lead the design team for Cell won't be around to reap the benefits of this highly scalable architecture. I truly think their time was coming in ps4 with this tech and it would pay off in spades. As it is, it seems he was a bit of a scape-goat for this long term investment project known as Cell.

BR I still think was a mistake and if this were a sticking point with Ken's ps3 design, then maybe he does deserve this. If not though, (I can't see why Kutaragi would have been pushing for a nextgen movie format when it was obvious it would delay his console and vastly increase its price) then I think this was a mistake and an injustice.

I'll also miss his wildly out of context and poorly mistranslated quotes.

Why are you writing off cell and it's future so fast ?

anyway it's really a shame that the guy is being tucked away in to the basement ( along with the rest of ideals of Akio Morita and Masaru Ibuka ), after all it's thanks to him that Sony's electronics division is making money again and their semi division has been doing well.

I do hope ken leaves Sony and like so many other brilliant folks at Sony goes to work for another company or for himself.

 

[Titanio]

Why are you writing off cell and it's future so fast ?

I don't think he is. He's just saying that Kutaragi won't be around, or at least at the helm, to see the long-term payoff in Cell.

I do hope ken leaves Sony and like so many other brilliant folks at Sony goes to work for another company or for himself.

I'd say that asides from these casual roles former big-wigs find themselves in, it probably will be a genuine retirement, though I could see him taking on other consultancy or chairmanship roles. Though it is tempting to look at recent events as precipitating this move, either way he had for quite some time been talking about his desire to retire earlier rather than later. An observer an apparent friend of Kutaragi is quoted here:

Doherty, who said he was personal friends with Kutaragi, though he never did business with Sony, thinks it's too early to say Kutaragi is leaving because of the PS3's bad start.

"Having spent time with him without Sony PR people around, I know he's been waiting for years to play golf with his wife," said Doherty.

I remember some time ago a similar sentiment was expressed in one of those profile articles on Kutaragi in some business magazine. So now that he has the opportunity to put his feet up, he might well really do so.

 

[patsu]

Ironically Blu-Ray by all appearances was the weight that sunk the PS3 launch. It delayed the mass production necessary for launching the console and added significantly to the cost without bringing immediately obvious benefits to its gaming audience.

Whether or not the Blu-Ray tie in will eventually turn out to be a win for Sony as a whole remains to be seen, but there is no doubt that its inclusion has hobbled the launch of the PS3 console.

Quite a few things went wrong during PS3 launch (Bad PR handling, delayed software, delayed blue ray diodes). They are still crawling out of that one.

Nonetheless there were/are still possible moves for PS3 (with Blu-ray) to surge ahead. I don't know what's on Kaz's mind, but streamlining and simplifying their operations (at the middle layer) sounds like a good mid- long- term move.

KK was interested in the Cell computing concept, networked distributed computing. By all accounts, his contribution as a driver of the PS3 design lies in those areas.

Bad things happened during his watch. I don't think he can plead innocence even if he's only interested in the Cell computing concept. He gave the final approval to incorporate Blu-ray into PS3. He shall wear the glory and the consequences as the (ex)chief.

 

[zed]

Well as already shown the sales spikes are directly related to the recent deals on Blu-Ray movies, although that wasnt really why i questioned what you said. The sales of nexgen format HD material as a whole, both Blu-Ray and HD-DVD, are still extremely niche compared to other formats, so calling anyone a winner of anything is really quite ridiculous. Even as cocky as Sony is they know this too so it wouldnt be directly related to this news.

'already shown'? (yes ive read the already shown stuff, but based on the facts the answer is no)
http://news.yahoo.com/s/nm/20070423/tc_nm/bluray_dc
http://www.dvdempire.com/Content/Features/hidef_wars.asp

true though whilst blu-ray is cartainly outselling hd-dvd its getting totally stomped by dvd + i cant see the situation changing for at least another year or two

 

[Rangers]

Well I hate to say it but PS3 hasn't been doing so great and Kutaragi's "vision" seems to have floundered. I'm not big on what the Cell has meant for Sony beyond a lot of cost.

Sony's gaming might be better off without Kutaragi imo.

 

[Nesh]

Well I hate to say it but PS3 hasn't been doing so great and Kutaragi's "vision" seems to have floundered. I'm not big on what the Cell has meant for Sony beyond a lot of cost.

Sony's gaming might be better off without Kutaragi imo.

You are a hasty judger. Nothing starts "maturely". It needs time. Thats all I have to say

 

[Megadrive1988]

but can PS3 be saved, with the right pricing, games, and strategy?


or is it already too late, is PS3 "doomed", will Sony try to cut its losses early and introduce a PS4 in 2010-2011 ?

 

[Nesh]

but can PS3 be saved, with the right pricing, games, and strategy?


or is it already too late, is PS3 "doomed", will Sony try to cut its losses early and introduce a PS4 in 2010-2011 ?

First of all make yourself this question: is the PS3 really an "endangared species"? Is it really doomed?

 

[quest55720]

but can PS3 be saved, with the right pricing, games, and strategy?


or is it already too late, is PS3 "doomed", will Sony try to cut its losses early and introduce a PS4 in 2010-2011 ?

I think the PS3 could be saved every where but nintendoland err japan. It would take a lot of luck and sony willing to lose a crap load of money. I can see no reasonable way they could win japan unless an astroid hit every Wii/DSL assembly plant. Take a look in the japan sales thread it is getting out of hand the Wii is now outselling the PS3 7 to 1. Almost fitting this thread was made today in light of the new sales figures.

 

[Sis]

This news saddened me in a way that I didn't expect. There's so few iconic figures in the industry and though I disagreed with with direction of the PS3 and his hyperbolic prognostications, Ken Kutaragi was/is a true visionary. I hope he finds a new avenue for his work that is void of politics and large corporations; necessity is the mother of invention and as such he will require great creativity with whatever new endeavor he takes on. I look forward to it...

 

[chachi]

Bad things happened during his watch. I don't think he can plead innocence even if he's only interested in the Cell computing concept. He gave the final approval to incorporate Blu-ray into PS3. He shall wear the glory and the consequences as the (ex)chief.

I think Kutaragi was blinded by his vision of how he thought technology should be rather than producing a console that would continue the brand's dominance. Remember his line about getting a second job to afford the PS3? Ouch. Worse, the console he eventually delivered hasn't really shown markedly superior performance to the 360 yet and both are being thoroughly crushed by the much weaker yet innovative Wii. Hate the limited capabilities of the Wii all you like but no question Nintendo made MS and Sony look stupid this time out.

I can see why Stringer would get some hate right now but he's right that software is the future and building hardware to last "10 years" is expensive and ultimately pointless. Not much to say about Kaz other than he seems like the perfect choice to lead Sony back, though it's probably too late for this generation. Hopefully there will still be enough money to be made selling to the 2nd and 3rd place consoles that we see the AAA titles continue to be made for the higher end hardware.

Re: CarlB's thing about Apple and Kutaragi, no chance that would ever happen, Jobs is way too much of an egomaniac to think of bringing in someone like him. It would be interesting if KK did what Jobs did after he was fired (i.e. a NeXT type startup), but Jobs was always more about the experience rather than the hardware, and it's a lot harder to do a splashy startup when you're a hardware guy. I hope he does do that though, instead of settling for a "window seat" role as technology adviser.

 

[patsu]

I think Kutaragi was blinded by his vision of how he thought technology should be rather than producing a console that would continue the brand's dominance. Remember his line about getting a second job to afford the PS3? Ouch. Worse, the console he eventually delivered hasn't really shown markedly superior performance to the 360 yet and both are being thoroughly crushed by the much weaker yet innovative Wii. Hate the limited capabilities of the Wii all you like but no question Nintendo made MS and Sony look stupid this time out.

Hmm... give them some more time. Xbox 360 and PS3 should be able to come up with some amazing software. I'm still waiting for that "Magic Mirror" application originally demo'ed by Toshiba for Cell. Not to mention I'm somewhat anxious to experience Playstation Home.

I can see why Stringer would get some hate right now but he's right that software is the future and building hardware to last "10 years" is expensive and ultimately pointless. Not much to say about Kaz other than he seems like the perfect choice to lead Sony back, though it's probably too late for this generation. Hopefully there will still be enough money to be made selling to the 2nd and 3rd place consoles that we see the AAA titles continue to be made for the higher end hardware.

Well... I'll wait for the industry to straighten itself out. In the mean time, I'll just enjoy the first and second party games, plus whatever serious games/non games on PS3.

Re: CarlB's thing about Apple and Kutaragi, no chance that would ever happen, Jobs is way too much of an egomaniac to think of bringing in someone like him. It would be interesting if KK did what Jobs did after he was fired (i.e. a NeXT type startup), but Jobs was always more about the experience rather than the hardware, and it's a lot harder to do a splashy startup when you're a hardware guy. I hope he does do that though, instead of settling for a "window seat" role as technology adviser.

Ken seems interested in distributed computing and convergence. He would likely spend his (spare) time on next-gen software ...in addition to hardware advances.

 

[whatever7]

Sony music will be the end of PS4, the company needs to break up.Stringer will be gone a year from now.

Well maybe Steve Jobs forcing the music industry to remove DRM will actually help the fragmented Sony divisions to unite together.

 

[Farid]

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

Just this news has me

Personally, it has me

He sure loved to push the envelope when it comes to technology, but he clearly wasn't a level headed anymore to supervise the creation, the marketing and the sales of a successful product.

Technology alone doesn't sell any product. I hope it's a lesson everybody learned on the market.
$299 is the right "price." Hell, I'd argue $199 is the right price, but at least based on previous experiences, starting with a $299 price point proved to be a perfectly working business model... Unlike the 399/499/599 USD price points.

He did perfectly well with the PS1, he did really fine with the PS2, he did OK the PSP (should have been cheaper and marketed another way) and he did wrong with the PS3 (Many reasons, but the main one only suffice to explain it all: too pricey to produce).

SCEI must remember that PS1 was successful because it was a great gaming product, a well marketed one and sold at a fair price (Sold $299 against a $399 Sega Saturn in the US).


Anyway, to be somewhat "fair" to the man, some sources close to SCEI say that Kutaragi initial plan for the PS3 was to sell the console at a "low price" no matter what, but the appointment of Stringer as head honcho and others internal change at Sony Corp. made Kutaragi plans irrelevant.

With that said, no matter how you slice it, it would still remain a poorly executed project by Kutaragi. On one hand, they could have had a successful product, from the get-go, which would have cause the company to bleed an insane amount of money that they might not recover in a single generation; which defeats the principle of any basic capitalistic endeavour. And that holds especially true when you consider Sony's financial situation.
On the other hand, the actual scenario, they get a really high priced product, due to its high production costs, with a slow market penetration attribute, which jeopardises the product market success in the long haul.

In both cases, Kutaragi failed to create a streamlined, relatively cheap and easy to produce next generation product to capitalise on the Play station brand success and allow SCEI/Sony Corp. to reap the profits out of it.
It was such an easy game to play. Sony already had the mind share, it had the brand, it had the publisher support, all it needed was the right product. In the absolute, price is not part of a product, in the facts, it is, and that's exactly what is wrong with the PS3 as a product, the price.

 

[karlotta]

KK didnt need the BlueRay for the pretty pictures/games. ONLY the evil side of sony wanted to eat your children with there bluerays... Bluray bad for KK. No BR, PS3 is much cheaper, and hits the market sooner.... KK wasnt BR Stringer is BR.

 

[Farid]

http://biz.gamedaily.com/industry/feature/?id=15947

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."

 

[-tkf-]

Ken had what everyone else is lacking, visions. And he had a drive and will to push those visions and i´m sure he pushed everyone around him hard as well. His competitors have him to thank for the giant Console market that everyone wants a peice of.

And please guys, drop the BR makes the PS3 cost 200 dollars more. We have been around that topic for endless times, anyone claiming that it´s the reason the PS3 is 200$ above a 360 is stupid, surely it must be clear that there is more to the 200 dollars than just a BR drive, 60GB HD,HDMI,WiFi,RSX,CELL,Cooling, INTERNAL PSU,Memeroy Card Reader,Free Access to Playstation Network and of course the Silver Chrome look