SCE shakes up top-level management

Wait, Kaz is still working out of the US or going back to Japan headquarters?

But yeah, it seems Sony is recognizing the importance of the foreign subsidiaries more.

Good question ! No idea.

Probably shuttling frequently. My guess is he'll still base his activities primarily in US: closer to the market. If he stays in Japan, Jack Tretton cannot flow information to the boardroom as effectively (Reeves and Kutaragi are in Europe and Japan respectively).

Also if he's in US, he may be able to tap on Western talent better.

Who's the 4-man-tag-team Chubachi mentioned ? Kutaragi, Hirai, Reeves and Sato ? Or is there a new hire coming up ?
 
I think indications are Hirai's going to be back in Tokyo.

Titanio that was a good find though, and it echoes my own thoughts that Kutaragi is hardly out of the limelight, he's just going to be doing what he loves anyway; dreaming up new technology and setting directions.

But Kaz will be the 'field commander' so to speak in seeing how those ideas get marketed/incorporated on a per territory basis.
 
I think indications are Hirai's going to be back in Tokyo.

That sucks though. Not that I will miss him but US will not be represented in the important meetings in that case. Hirai will have some idea but not up to date and not close to the devs and market.
 
I find this article even more interesting that got lost after this news:

http://www.gamespot.com/news/6162509.html?tag=latestnews;title;2

"The software available for any console is crucial to its success. According to a report on the Bloomberg news service, developers may be thinking carefully about making games for the PlayStation 3 because of the number of sales required to put the projects in the black. Namco Bandai Holdings Inc. president Takeo Takasu has said in an interview that PS3 games must be a mass-market success. Games for the next-generation console cost an average of $8.6 million to create, according to Takasu, and need to sell 500,000 units before the developer can turn a profit."

8.6 million is probably a reflection of Namco inability to wrap its head around the PS3. 500,000 minimum units moved means roughly 40-60% of all games released will either lose money or make just enough to have a Dunkin Donuts party after paying all the bills.
 
Titanio that was a good find though, and it echoes my own thoughts that Kutaragi is hardly out of the limelight, he's just going to be doing what he loves anyway; dreaming up new technology and setting directions.[/quoite]This would be a smart move IMO. Kutaragi has the 'vision' and says 'I want PS4 to have 8 flavours of soda on tap and a Jelly Bean dispenser', leaving everyone else to work on the existing platforms. Kutaragi is not the man you want running the here and now. I dare say he had a vision for PSP, and then when it was released, his attentions switched to the next big thing and it got forgotten. Give him a job where he can stick with future products without having to be involved too much with the current ones.
 
From MSNBC:

Exec: Change needed to ensure succerss of the PlayStation 3.

I am not sure about all the doom and gloom. Sony Corp has been on the rebound and is not relying on the PS as much as they were 3 years ago. BluRay in the PS3 is going to give Sony a competitive edge in the HD Optical market and strengthen their already strong studio support.

Sure, this is kind of surprising as it really looks like demotion through promotion, as well as it indicates that Sony realizes there were mistakes made with the PS3. I think Sony made the mistake of not taking the route of putting something out competitive in the same cost paradigm as the competition by either

1. releasing in 2005 with limited numbers and cutting whatever fat was necessary to reach that goal (e.g. no BluRay, no standard HDD, etc) or

2. ABSOLUTELY ensure LARGE 2006 quantities in all 3 major regions, cutting any and all fat that limits production (BluRay)

I don't see BluRay as a key to success for the console market this generation, and it also ties Sony down with a manditory HDD. CELL, XDR, RSX, GDDR3, Wireless, PS2 compatibility, Online, etc would have been a great console. Sony could have easily touched off within $50 of MS on retail, charging the PlayStation Premium, and probably forced MS into another poor position.

If Sony releases a console in quantities and in the general price range as MS they take the console lead this gen--and don't give it up. Now? Seeing the cost + production issues it looks lik 2008 at the earliest.

Another issue is software. Execs from Sony were saying at E3 2005 "The dev kits were out there and they are doing amazing stuff on them". Fast forward 18 months later. The PS3 launch is full of portware. Heavenly Sword and Motorstorm are 2007 titles now and all the big guns (MGS, FF, God of War, DMC, RE, SOCOM, etc) are a year off or more. Someone at Sony really needed to be beating the, "GUYS! We need software!" The "ride the PS2 an extra year" strategy was a short term win, but long term gamble that I think will have caused them significant market share damage (namely in the form of giving MS new life, not necessarily Sony losses).

I have not been a huge fan of MS's strategy. UE3 everywhere, while possibly annoying, seems to have been well calculated. The strategy seems to be simplly: next gen quality games FAST... and let the specialized X360 software hit center stage in late 2007 and beyond. Looking at MS's lineup it seems that next-gen titles have seen delays across the board: Oblivion was delayed, GRAW was delayed, Forza Motorsport 2 was delayed, Spinter Cell DA, Brother in Arms 3, Bioshock, Mass Effect, Too Human, Crackdown, on and on. It seems next gen titles are not only taking longer to developer but are also facing 3-6 month delays as a routine. Not all for sure (Condemned, PGR3, Kameo, Viva, R6 Vegas, Gears of War, etc seem to have made it on time) but it seems quality internal efforts have seen a lot of delays. While UE3 games are not incapable of avoiding such, it does seem that MS will have a larger library of next-gen quality games sooner than Sony will and largely in part due to the use of UE3. Epic hit a sweet spot in deploying when they did... they may have even been a year late at that.

Of which makes things all the foggier because a. Sony knew MS was pushing this direction b. had to know the state of their own development teams and c. were pimping UE3 at E3 2005. e.g. Rainbow Six Vegas--Sony had a chance to make sure this was a launch title, if not an exclusive if necessary (ala CoD2 on the X360). Instead Sony has seen a lot of quality multi-platform titles slide.

Sure, all launch pains, but lets not forget that the PS3 was to be shipped in Spring 2006 :)lol: ) and was said by Sony themselves that there was a chance for 2005 in an interview (oft quoted here at B3D in Summer/Fall 2005).

There is really no excuse for the current situation. The PS3 is a wonderful machine, has fantastic developer and publisher support, will succeed as a console with great software as well as robust media features, but it has a host of issues that should have been resolved. Things like online services and image scaling are just... shocking.

Change appears to be necessary. I am not sure dropping KK is a good move. I dislike him as I disliked Nintendo's Yamauchi (brash, a lot of hyperbole, out of touch at times) but also respected his ability to lead a division in envisioning and executing wonderful ideas that benefit consumers. The man is a geniuous, and while eccentric he is deserving of much appreciation from gamers everywhere. Ultimately being in charge means you are responsible for success and failure, so the software and hardware issues fall to him--even if unfair. e.g. The BluRay issue is as much corporate as an issue with KK.

As for no PS4... HA! Maybe it will be called something different, but Sony WILL have another console. That said they made it more difficult for themselves. A $350/$450 PS3 paradigm mimicking the 360 (same general gist w/o BR) and a better focus on software getting out of the door and I think Sony is right back on track for 100M+ in 5 years again. I think 100M in 5 years is going to be nearly impossible for Sony now and they have pretty much put MS in position for 40-55M this generation. Sony is in the hard position of A) guessing when X3 will be launch and B) deciding to either match the date OR wait a year. OUCH. Wait a year and you give up marketshare again, go head to head you run into the issue cutting your money making PS3 short.

And it will be hard to guage because I think some technologies are slowing--in particular in the end result we see on screen--as well as the cost reduction path will be getting fuzzy past 32nm. Will we get 16nm and 22nm with reasonable investments?

We should all hope for a PS4. For the same reason we should hope for a X3 and N6. Competition is good, especially with different takes on the market. Competition breeds excellence and means more, for less, for consumers as well as giving more priority to the people, developers, who actually make the games. A world with only MS/Nintendo is like a world with only Sony/Nintendo--not so exciting IMO.
 
This would be a smart move IMO. Kutaragi has the 'vision' and says 'I want PS4 to have 8 flavours of soda on tap and a Jelly Bean dispenser', leaving everyone else to work on the existing platforms. Kutaragi is not the man you want running the here and now. I dare say he had a vision for PSP, and then when it was released, his attentions switched to the next big thing and it got forgotten. Give him a job where he can stick with future products without having to be involved too much with the current ones.

One man can only do so much. Best to have someone where they excell -- and lack the power they want -- than spread too thin and doing things they are not best at. e.g. Many NFL coaches are not the greatest GMs because the two require different skills and are both fulltime+ jobs.

If anything there should have been more oversight. There needed to be more questions and interested parties speaking up. Now that sort of product-by-democracy can suck and you do need someone to make the hard calls, but in the same delegating is a vital part of any management team.

And that seems like EXACTLY what is going on now. More people with more power and focusing people on what they are good at as well as prepping for the future.

For what it is worth, one reason to believe things are not really that bad at Sony: When Nintendo and Sega hit hard times one thing seemed to happen frequently: guys at the top hitting the curb and ending up with the competition. This is more of a restructure to maintain dominance than a "oh no! the house is on fire!" but it is indicative that some bad mistakes were made that need to be resolved.
 
Sony's been booking some significant PlayStation related expenses to outside divisions since PS2 R&D; their profits during the PS2 generation really haven't been so impressive considering their overwhelming marketshare. They even netted losses in two consecutive quarters in what should have been one of the most lucrative years of the platform's cycle.

Instead of internally designing a lot of their own processors and having ended up needing multiple times the amount of silicon as their competitors in order to be comparable, Sony should've turned to outside specialists for the IP of their last few consoles.

The first PlayStation was an impressive design, though.
 
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Great post man.

Looking at MS's lineup it seems that next-gen titles have seen delays across the board: Oblivion was delayed, GRAW was delayed, Forza Motorsport 2 was delayed, Spinter Cell DA, Brother in Arms 3, Bioshock, Mass Effect, Too Human, Crackdown, on and on. It seems next gen titles are not only taking longer to developer but are also facing 3-6 month delays as a routine. Not all for sure (Condemned, PGR3, Kameo, Viva, R6 Vegas, Gears of War, etc seem to have made it on time) but it seems quality internal efforts have seen a lot of delays.

I think MS is pulling a Nintendo on us. Sony has a couple of hard hitters coming up in 07, and MS better be prepared.

They have two fresh and pretty solid first party games for now, and they are giving the other important titles some (much needed) extra time. There's really no need to push those other titles out now too. 2007 is far more important...

Next year is going to be great with superb titles on every platform! :D

Did I mention I love competition? ;)
 
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