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Life After Kutaragi - What Next For Sony?
Posted: 04-27-2007, 06:41 PM

As the father of the PlayStation leaves his role at Sony the company faces a daunting new era in the videogame market. The PS3 is getting tepid success, sales forecasts have been dropped by Sony and now the man behind the whole PlayStation phenomenon is no longer at the helm. So what next?

Bye Ken, thanks for the memories. The landscape of the industry has changed forever and it is perhaps a sign of the times that Sony feel big changes are needed. Following last November’s reshuffle that saw him move from the position of SCE president to that of chair-man and group CEO, Sony has confirmed that Ken Kuturagi will retire from his executive position this July.

As part of the reshuffle, current SCEI president and group COO Kazuo Hirai will be pro-moted to president and group CEO. Speaking after the announcement, Kutaragi said:

Quote:
I am happy to graduate from Sony Computer Entertainment after introducing four plat-forms to the PlayStation family [...] 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 endeavours.
Howard Stringer added: "Ken Kutaragi is a rare combination of a powerful visionary and entrepreneur in one figure. 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 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."

In inventing the PlayStation, Kuturagi transformed the videogame industry forever. The brand become synonymous with digital entertainment and together with the PS2 the consoles have a combined installed base of more than 200 million and over 2 billion units of PS and PS2 software have been shipped around the globe. That’s a whole lot of PlayStation. However, in recent times things have gone a bit awry...

In EGM's March issue, Jack Tretton, Sony Computer Entertainment America president and CEO said: "If you can find a PS3 anywhere in North America that's been on shelves for more than five minutes, I'll give you 1200 bucks for it." Everyone laughed. The interview was conducted in January, when most US stores selling PS3s had a rather large surplus in stock. In fact, some had over twenty in store. That’s a whole lot of green. The problem is, Sony never quite got the PS3 right like they did with the original PlayStation and then the PS2. The launch delay didn’t help things, neither did the luke-warm sales and at the end of the day the PS3 hasn’t done well enough when you look at Kutaragi’s track record.

Which is a great shame really. What that man has done for the industry of videogames is up there with Miyamoto, the Yamauchi family, Gunpei Yokoi and Yuji Naka. Whilst he didn’t create any great videogames or do anything artistically brilliant, what he did do was make an outstandingly robust business model designed for pure profit and marketability. Kutaragi is not just the ‘Father of the PlayStation’ he is the father of the modern videogames business. Kutaragi was, and still is, an excellent businessman, but the PS3 will remain a major blot on his impeccable record. Few thought the PlayStation stood a chance when it was in the latter stages of its development, but the team behind the system really knew what they were doing and made the system a success.

Kutaragi always faced stiff opposition during the development of the Super NES CD Drive (the device that would go on to become the PlayStation), and it was only the support of Sony CEO Norio Ohga that saw the project continue. His ideas were considered a huge risk by many at Sony but Kuturagi proved them all wrong as the PlayStation went on to become one of the most successful brands in the history of home entertainment. Whilst it all went a bit tits up in the end for Ken, he did provide the world with some quality entertainment; both in the things he said and the consoles he created.

Indeed, it was many of the things that Kutaragi said that probably rubber-stamped his move down the Sony pecking order. The price-point, image problem and delay of the PS3 plagued the last twelve months of his time at the helm:

Quote:
"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"
Reduced sales predictions from Sony beg to differ. And let us not forget: "Playstation 3 will be in 4D", yes it is the console that can transcend space time, ingenious! The problem was, Ken got cocky. The second you take something for granted (like the success of a games console) is the moment you start to lose out, just ask Nintendo. Still, let us not dwell on his latter mistakes.

Ken Kutaragi was a behemoth of the videogames industry. He transformed the landscape of interactive entertainment and created a hugely powerful worldwide brand name that has dominated for over a decade. Kudos Ken.

Article by James Temperton


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04-27-2007, 08:48 PM

Ken Kutaragi, we salute you.


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04-27-2007, 08:50 PM

Microsoft will take advantage of this some how....


The PS3 may be weak now...But the 360 is slipping and we will strike when the time is right...

  
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04-27-2007, 08:55 PM

Quote:
Originally Posted by crash1202 View Post
Microsoft will take advantage of this some how....
How so? Considering how Ken has been brushed aside lately by Sony, I don't think he matters.
  
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04-27-2007, 09:16 PM

Not anymore, but if it wasn't for him.......


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04-27-2007, 10:50 PM

i feel a little loss over this some how i think this could kill the ps3 in the us for a little while maybe who know jsut my thought



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04-28-2007, 05:17 AM

how could that kill the ps3 in the states?
  
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04-29-2007, 09:42 AM

Quote:
Originally Posted by Pav View Post
Not anymore, but if it wasn't for him.......
You mean "If it wasn't for Nintendo" right?
  
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04-29-2007, 10:45 AM

Yeah, without Nintendo we probably would have never heard of a video game!!

SNES, the greatest console EVER!!!


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04-29-2007, 11:37 AM

Sony would never have got into the gaming industry without Nintendo.
  
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04-29-2007, 10:31 PM

I don't know how much the "father of PlayStation" thing is true but gamers owe more to Nintendo than anyone else.

It was Nintendo who revived the industry after the crash of 1983. It was Nintendo who made it popular in the early 1990's. It was Nintendo who provided a console for Sony to build a CD add-on for. It was Nintendo who pulled the plug on the deal so late on that Sony could release that add-on as a standalone console.

Not only that, it was really Nintendo who were responsible for the success of the PlayStation. If Nintendo weren't complete dicks about what games could and couldn't be developed for their consoles, all the console selling franchises wouldn't have jumped ship to Sony where they basically don't care what games are available.
  
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04-29-2007, 10:35 PM

i also agree with ScootaKuH


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