Sony shuffles top PlayStation management

by Kyle Orland { Nov 30th 2006 at 10:35AM }

Get used to some new titles for the top people responsible for the PlayStation. Sony announced today that current Sony Computer Entertainment president Ken Kutaragi will become the chairman and group CEO of the division. He will be replaced by Sony Computer Entertainment America chief Kaz Hirai, who will move to Tokyo to lead the worldwide group. SCEA vice president and co-COO Jack Tretton moves up to take Hirai's former place, becoming the first American to hold the hold the top post at the American computer entertainment division. The changes take effect tomorrow.

What to make of the reshuffling? While the new chairman title is a nominal promotion for Kutaragi, it's hard to see this as anything but a rebuke for the "father of the PlayStation" after the PS3 launch was beset by delays and missed production targets. Sounds to us like he's been told to go sit in the corner (office) and think about the "big picture." Hirai, who has been the more public face of the PlayStation in America, will now have a more active role in overseeing the PlayStation's worldwide fortunes. Get used to seeing a lot more of Tretton, a Sony veteran who has operated mostly behind-the-scenes until this point.

Read -- Bloomberg Story on Reshuffle
Read -- SCE Announces New Management Team (press release)
Read -- SCEA Elevates Jack Tretton ... Kaz Hirai (press release)

Tags: management, promotion, ps3, reshuffle, sony

Reader Comments (Page 1 of 1)

crono141 @ Nov 30th 2006 10:46AM

How either of these people dont get DEMOTED or FIRED outright for the bungling of the PS3 launch is beyond me.

joey @ Nov 30th 2006 10:50AM

Yep this is the big business equivalent of firing Ken from his current position. They can't just outright get rid of him 100%, as that would admit that he was doing a bad job, which would then reflect poorly on all of their big talk. They have to save face.

Basically, they've turned Ken into a high level consultant.

Pixelbox @ Nov 30th 2006 11:00AM

I don't think anyone is surprised that Sony needed someone new to salvage what is rapidly becoming a trainwreck.

Back_lit @ Nov 30th 2006 11:04AM

"Sounds to us like he's been told to go sit in the corner (office) and think about the "big picture."

Reminds me of what happened to Gunpei Yokoi (Father of the GB and Metroid) after the Virtual Boy fiasco. Didn't fire him but didn't let him get involved in any projects of real meaning there after. However, I know this won't happen to the head of SONY's game division.

Jonti @ Nov 30th 2006 11:04AM

Jack Tretton: professional cuckoo. Show us your business card!

Dragon Warrior @ Nov 30th 2006 11:07AM

This is Big news. For a japanese company to move a guy like Ken off the direct leadership team of the playstation is bad news for Ken. It can only be seen as a negative reflection inside sony on the launch of the PS3 and PSP. Might be a positive for sony and gamers to get some fresh leadership for the Playstation brand.

Earl @ Nov 30th 2006 11:07AM

Yeah, blame Kyle for Sony's shortcomings.
Something needed to happen for this PS3 debacle.
Will people ever put their faboy attitude aside and admit Sony screwed up?
NO I am not a fanboy of any console, I am a fanboy of ALL video games. I owned a PS1 and PSP and still own a PS2 and a Sony home theatre system. But I am still able to admit Sony shot themselves in the foot with this PS3.
I won't purchase a PS3 until one of 2 things happen: when they drop the price, considerably or if they release a version without the blu-ray. The latter will involve a drastic price drop also.
Either way it is too expensive and I don't want either blu-ray or HD-DVD due to the drastic DRM restrictions placed on the new medias.

Gamer G @ Nov 30th 2006 11:12AM

Personally I cant see it being the playstation crew being responsible for the debacle, surely its whoever upstairs decided to use the Playstion as a trojan horse for bluray?

Without bluray, the PS3 would be cheap, on time, easy to make, would have made tonnes of money and would have killed of Microsoft as a competitor in the console business.

With all their stupid decisions that have accumulated all they have done is make the door WIDE open for Microsoft to come barging in.

Adam @ Nov 30th 2006 11:16AM

Real time President changing!

clo1_2000 @ Nov 30th 2006 11:17AM

#2 Hit the Nail on the head. Big Companies can't just outright fire their executives because it will send the common investor into a sell-off. They'll leave him in his new position for a while and then give him severance with a news post saying he is leaving to "Spend more time with his family" or to "Pursue a new opportunity". Sony will never admit anyone did anything wrong, because that would imply the company made bad business decisions.

@ Nov 30th 2006 11:24AM

Hate all you want Nintendorks, Ken is the reason why Nintendo has been in last place for the past decade in the console arena.

And, if you know anything about corporate governance... being chair of the board of directors wields more power than being president/coo. Anything major has to go through the board; day to day stuff is the responsibility of the pres/coo while the SVPs are given portfolios like communications or production.

Bill Gates is the chair of MS... do you not think that he has any influence in directing MS?

The Mole @ Nov 30th 2006 11:26AM

RIIIIIDGE RAAACER!

crono141 @ Nov 30th 2006 11:31AM

>,

You were doing good there for awhile not sounding like a total fanboy moron. Try a little harder next time.

MosquitoControl @ Nov 30th 2006 11:41AM

>, yes, Ken has a lot to do with the PS being King. But Mark Messier had a lot to do with the Rangers winning the Stanley Cup. However, he stuck around too long, everyone else passed him, and keeping him around ultimately hurt the team greatly.

People can lose their prime. People can be King for a while then make mistakes.

And, for someone lecturing about corporate governance, you clearly don't understand the practice of promoting people out of power. Nor do you seem to understand that title is meaningless and job description is everything.

If the PS3 flops Ken will be gone. They moved him to a seat closer to the door.

MosquitoControl @ Nov 30th 2006 11:42AM

And remember - he was expected to be head of Sony, not Stringer, and he was rather upset when he was passed over.

crono141 @ Nov 30th 2006 11:48AM

Kaz Hirai isn't exactly a new voice of leadership. Isn't this the guy we get the "real time weapon changes" and "giant enemy crabs" quotes from?

Awol @ Nov 30th 2006 12:01PM

They just wish they had the reginator

Earl @ Nov 30th 2006 12:06PM

@12:

Nintendo in last place? Who cares? They still turn a profit. Business is about making money. The PS3 is NOT turning a profit anytime soon. They can't even make enough that work properly, how much money do you think they are losing from all those systems will cell processors or BD that has to be junked?
Oh and you forgot to mention that Sony IS in last place in the handheld division. That's what they get for trying to shove proprietary formats down people throats. I NEVER bought a movie for my PSP. Why pay $20 for something that ONLY works for PSP, when plenty of programs can convert existing DVDs to the memory stick?

Robotic House Plant @ Nov 30th 2006 12:17PM

Shuffling management so soon after launch is a sign. I think the recent publication that some vendors were waiting on Sony's direction so they could offer their titles exclusively to the PS3, but fell through when they didn't hear back from Sony in time, certainly hasn't helped matters. And now we're hearing about some vendors taking a wait and see approach and that sales have to be 500,000 to make a profit. If true, these are troubling revelations.

Szu @ Nov 30th 2006 1:10PM

@17
"Kaz Hirai isn't exactly a new voice of leadership. Isn't this the guy we get the "real time weapon changes" and "giant enemy crabs" quotes from?"

It was Kaz Hirai who said those quotes. Kaz is famous for Riiiiiiiiiiddddddddgggggeeeeeeeee Racer.

number40one @ Nov 30th 2006 1:41PM

Ouch. I thought they'd wait a while to see how things go before they did something like this.

However, things have been "going" with the PS3 for a while, and they haven't been "going" well. This seems to me like the biggest top-level shakeup within the industry since the shuffling of Yamauchi and Iwata.

Similarities much?

number40one @ Nov 30th 2006 1:42PM

Oh, and I'll say it again, Blu-ray is the reason for this whole debacle. HUGE mistake.

Szu @ Nov 30th 2006 1:59PM

Correction:

I meant to to say "It wasn't Kaz Hirai..."

DeShaun @ Nov 30th 2006 2:05PM

I love #12. For one thing, who even mentioned Nintendo, aside from you? Secondly, your map of the corporate world is flawed. Read a damn book.

I don't know why, but I kinda saw the Kaz thing coming. He tried so hard (and failed) to push a product that had nothing to offer. I mean, who else could get so enthused about Ridge Racer? He really wanted people to get behind the product, even if, at a glance, there wasn't much under the hood.

Anyway, you can be sure that such an abrupt staff change is not the result of success. They are falling, and trying to land on their feet. It's a smart move.

Sometimes, having too much money is a bad thing. PSX won when it did, not because it was such a superior machine, but because Sony had the money to license titles people wanted. Sony was never a praised first party developer like Nintendo and Sega, but they could afford exclusives from everyone else, and that helped them in the long run. Hell, it's how the NES dominated the Master System, in spite of the MS being better on paper. Everytime Sony has tried to step in on an exclusive format or something, they've silently suffered for it.

They should recover, but this probably isn't the last major action to be taken.

I have a question for anyone who knows: Does anyone know the average size of PS3 games? I'd really like to know if any have even surpassed the storage space of a dual layer DVD. I know that when PS2 titles first launched, a good deal of games were still on CD, so yeah, just curious.

Jim @ Nov 30th 2006 3:14PM

Riiiiiiiiiiiiiidge Racer (ok, maybe the last time I use this joke NOT)

I like Kaz Hirai and I think he'll manage a more positive PR towards Sony than Krazy Kenny K ever could.

Anonymouse Rep @ Nov 30th 2006 3:40PM

This, pretty much, is the corporate way of saying you're fired, have a nice day looking out the window.

In the old days, he'd be given a sword and expected to do the honorable hari-kiri. Given that, in the stores I've been in there is basically zero interest in the PS3 - everyone wants either a Wii or they're buying a 360 - that doesn't bode well for Sony at all.

Sam @ Nov 30th 2006 5:54PM

Looks like someone hit Kutaragi's weakpoint for massive damage. ZING!!

1up_clock @ Nov 30th 2006 7:03PM

"Hate all you want Nintendorks, Ken is the reason why Nintendo has been in last place for the past decade in the console arena. "

Guess what? Now SONY's in last place! Isn't that great?

I swear, do you need a map of the inside of your butt, so you can get your head out of it?

Brandon @ Dec 1st 2006 2:00AM

DeShaun I heard that Resistance when all was said and done came in at 16 GBs. And that was after they droped 1080p for 720p. I haven't heard about how big the rest of the games are.

solomonrex @ Dec 1st 2006 1:11PM

Hey, #12: Bill Gates is Chair because he realized he was screwing up and he needed to find a successor as he's getting older. So pretty much the same exact conclusion: Kenny K. is being demoted. Japanese companies never fire people - they even have a version of professor emeritus for older executives. Times are changing, but this is the worst thing they could have done to Ken. For now.

foobob @ Dec 2nd 2006 6:42PM

"Nintendo in last place? Who cares? They still turn a profit. Business is about making money."

I care. I'm not a businessman, i'm a gamer. Being in last place always means less games. They turn a profit? great for them! but i don't care about their profits, i care about games...

Jeremy @ Dec 3rd 2006 2:24AM

"the first American to hold the hold the top post" - Anyone?

arvinet@gmail.com @ Dec 3rd 2006 6:43PM

Wow! I'm amazed! Can people please read more carefully? or is it me who is missing something??
They moved him to chairman and Group CHIEF EXECUTIVE OFFICER.
President in American management equals COO, so that is operations. Had him been moved only to chairman you all would be right, but as far as I know he has been promoted to the top executive position. The CEO decides. Has the final word on everything. No questions. Period. If anything, this means they don't trust his ability to run operations, or even less dramatical, they put somebody to help him get things done. Day to day stuff. But they do trust his vision and executive decissions to make it happen.
IMO Ken was always right. Did a superb job marketing and getting exclusives for the PS and PS2. He has made impressive hardware pieces with the PSP and PS3, probably not that great in the aspects that made the first 2 consoles so succesful.
Most readers of Joystiq seem to be American biased towards the 360. MANY people bought the PS2 because it played DVDs, as a bonus; taking it as an excuse to justify the expense. The PS2 was launched in Europe at around 500 EUR. That was some 7 years ago. Make the numbers. Add inflation to that figure.
If anybody screws in Sony is the old CEO buying the f****** movies and music businesses and then pushing the electronics to make a player that doesnt support MP3s until it is too late, and pushing a stupid propietary UMD system for the PSP. Ken publicly said that was wrong. Another great decission of the old CEO was to decide LCDs was not an interesting TV technology till they lost all trace of leadership on TV and had to partner Samsung to get some technology to sell Bravias thanks to brand. As soon as they stopped sucking they regained number one in TV passing Sharp. Congratulations? NO. That just points out how much they haven't sold before. AND THE WORST DECISSION OF THEM ALL: NAming CEO the guy that run the movies business in America. Sony should sell all their stupid and dying intelectual property businesses and focus again on making great hardware. The walkman would have never existed if Sony had owned a music business to protect from the evil of piracy in tapes. iPod proved this statement right.
I never owned a PS1, nor a PS2. I am waiting to get my PS3 because it plays BD. And in 1 or 2 years everybody will think a DVD cannot fit a decent HD game anymore. 360 will join Dreamcast. The guy that lauched it for SEGA will have done it again for MS.
I own a PSP, a GC, a NDS lite, a 360 and next week hopefully a Wii. Just in case somebody thought of calling me a Sony fanboy.
Besides, Joystiq is great for comments on games, not so much on management. Bill Gates moved to Chairman and VP Product to avoid having his company tore into pieces due to the antitrust trials. He had a public image of the richest (and greediest) man on Earth that didn't help to support the argument "Monopoly? Predatory? who? us??" And IMO Steve Ballmer has been the best thing that could ever happen to Linux, Google, Apple and all others competing against MS.

sue costas @ Jan 26th 2007 8:07AM

Dear sony management i am a parent of a 10yr old blind boy and he loves playing the ps2 i really think someone should be able to make a gadget that would make it easier for blind/visual impaired people/children to play the playstations like audio description on the games telling them where to go what buttons to press maybe a braille controller etc,with all the latest technology nowadays i dont see why blind or any other disabled person should be excluded and not thought about. Please feel free to contact me if u need help with ideas to make life little bit easier for us parents and children