Howard Stringer, new head of SCEI

Odds are this particular story's true but i'm gonna laugh my ass off if this is an elaborate pre april fool's setup story for say KK going to Nintendo or M$.
 
vitaflo said:
Naw, I think it's all gaming profits. I read an article by Steve Kent several years ago saying that Nintendo made more in profit during the 32/64 bit era than Sony did. Not sure if that includes handhelds or what (it must), but regardless, profit is profit, I'm sure Sony has taken notice of it. Companies can be incredibly short sighted at times when they see their competitors raking it in hand over fist. Especially when you're supposed to be killing everyone in the market.

I hope they also took notice of the dramatic downfall of Nintendo's home consoles from a marketshare point of view.
 
Endymion said:
I hope they also took notice of the dramatic downfall of Nintendo's home consoles from a marketshare point of view.
It's really been more of a gradual decline for userbase though...

NES (1983-1994): 72M
SNES (1990-1999): 51M
N64 (1996-2001): 35M
GC (2001-current): 19M+

...while Game Boy's been accelerating...

GB (1988-1999): 71M
GBC (1998-2002): 49M
GBA (2001-current): 67M+
 
From B3d, didn't see it here

Earlier this month, news out of Sony HQ in Japan saw Sony Computer Entertainment head Ken Kutaragi demoted from his position as executive deputy president. He was also discharged from his position as head of Sony's home electronics and semiconductor divisions.

For the first time since his demotion, the force behind Sony's gaming division spoke out about the changes at Sony. In an interview with the magazine Nikkei Business, Kutaragi revealed that the decisions surrounding his demotions were made without his knowledge--he said he was informed only the day before the public announcement.

Despite the downgrade, he sees the changes as being for the good of Sony.

"It's a major reshuffle, with seven out of eight executives resigning [from Sony's board], including myself. It's an intense and drastic change. But it feels good to have a whole group of executives resigning. Other companies can't do anything like this," Kutaragi said.

Commenting on Sony's new CEO, Howard Stringer (who replaces the outgoing Nobuyuki Idei), Kutaragi said, "I've known Howard since the launch of Sony Computer Entertainment; we eat together during our breaks whenever we meet. I was wondering who was going to become the next CEO, but I'm really glad that it's him. He works very hard. This will allow employees to focus on their jobs [without any worries]."

Industry watchers were stunned by Kutaragi's demotion, since he had long been considered a likely candidate to be Sony's next president. That role, however, was taken by Sony executive deputy president Ryoji Chubachi, who also took over Kutaragi's position as head of the semiconductor division.

Current CEO Nobuyuki Idei commented to the press during the announcements that Chubachi was chosen as the next president because "he is a good listener, and he can make appropriate decisions at appropriate times...and he's good at motivating young workers."

Commenting on Idei's statement, Kutaragi said, "One employee who overheard Idei-san at the press conference came to me saying that [Idei's comments] imply I'm a 'bad listener.' But I was able to laugh that off. It seems that people within SCE were worrying that I would leave [Sony and SCE]. When it was decided that I would stay, people said they were glad. And I'm honestly thankful about that."

Kutaragi went on to confirm that he has no current plans to leave Sony, especially since he wants to continue working on the Cell chip project, which is close to completion.

"We're finally going to launch it, after more than four years of major development. I have the responsibility [of following up on the Cell launch], and I also have dreams. First, it will be placed in game consoles. Then, in the near future, I want to use it in TVs and home servers. There's much I want to do. I have been leading SCE [up until now], and I will continue to be its leader," said Kutaragi. "I will remain at Sony. I'm still young. It's my goal to keep moving forward."
 
Nothing that we probably didn't already know, but a bit of analysis...

nn20050404f1a.jpg


http://www.japantimes.co.jp/cgi-bin/getarticle.pl5?nn20050404f1.htm

Known as the "Father of the PlayStation," Ken Kutaragi seemed to many a logical choice to take Sony Corp.'s helm as it struggles to turn around its stumbling electronics business and regain its past glory symbolized by the Walkman.

But in a dramatic management reshuffle on March 7, Kutaragi was removed from Sony's board, though he still runs the company's game business. Howard Stringer, a Welshman who had overseen Sony's successful music and movie businesses, was named the new chairman and chief executive -- the first foreigner to lead the Japanese company.

Kutaragi's demotion wasn't for lack of accomplishments. His latest creation, the new portable version of the PlayStation, the PSP, is a hot item. Sony was on pace to sell as many as 3 million PlayStation Portables by the end of March.

Instead, it appears that Kutaragi's outspoken nature may be to blame.

Kutaragi, 54, has earned a reputation over the years as a geek, even a genius -- independent and shockingly frank by Japanese standards. He hasn't held back from criticizing company decisions, acknowledging earlier this year that Sony made the mistake of being overly proprietary about its content. In a culture that values harmony, he isn't exactly viewed as a team player.

His blunt manner may have been seen as problematic at a time when the sprawling company, whose core electronics business has suffered amid its expansion into entertainment, desperately needed cohesion and revitalization. Sony's stock has fallen about 70 percent over the last five years.

Ryoji Chubachi, a production and electronics expert who became president in the same reshuffle -- making him No. 2 behind Stringer -- praised Kutaragi as a talented engineer, but hinted that he wasn't suitable for managerial leadership.

"I respect him as an engineer," Chubachi, 57, told journalists at a recent gathering at the company's Tokyo headquarters. "In the area of semiconductors, I consider him my teacher."

Kutaragi, chief of subsidiary Sony Computer Entertainment Inc., declined requests to be interviewed for this story. But earlier this year, he was asked by The Associated Press about what he would do if he were to run Sony.

He said the company needed to revive its original innovative spirit, when it boasted engineering finesse with the transistor radio, Walkman and Trinitron TV.

Sony also has been hurt by its insistence on making its content proprietary, Kutaragi said. Some employees, he said, have been frustrated for years with management's reluctance to introduce products similar to Apple Computer Inc.'s iPod portable music player, mainly because Sony's music and movie units were worried about content rights. The iPod plays MP3 digital files, which are an open standard and widely used.

"We are growing up," he told reporters then. "We have to concentrate on our original nature -- challenging and creating."

It's unclear whether Kutaragi was punished for speaking out. But it is clear that consensus-builders -- such as people like Stringer, who doesn't speak Japanese, are reputed to be -- were chosen over potentially divisive critics.

Outgoing Sony chief executive Nobuyuki Idei didn't say why Kutaragi was passed up, but defended the selection of Chubachi as president, subject to shareholder approval.

"Mr. Chubachi is a good listener," Idei said at a recent press conference.

Stringer said he still views Kutaragi as a key person at Sony and instrumental in developing the next-generation video-game console dubbed PlayStation 3, or PS3.

"Obviously PS3 is a vital device for the company going forward. So I am under no illusions about the value and importance of Kutaragi-san," Stringer said, attaching the Japanese honorific "san."

Another widely held opinion is that Kutaragi, who as a top manager along with Idei, had to take some of the responsibility for Sony's failures.

"The old management had to be ousted, and so this was the only way Mr. Kutaragi could have ended up," said Tetsuya Furumoto, an analyst at Shinko Securities.

Battered by competition from cheaper rivals, exemplified by the dramatic rise of South Korea's Samsung Electronics Co. Ltd., Sony has been in deep trouble in recent years. It fell behind in flat-panel TV sets and got pounded by the iPod.

The PSX, which combined the PlayStation 2 with a DVD recorder and player, has bombed since going on sale less than two years ago. It was never sold outside Japan and Sony won't disclose PSX sales figures.

Kutaragi drew criticism from even devoted Japanese game players over reported glitches in the PSP after its initial release in Japan.

Some PSP machines in the initial shipment had a button that tended to get stuck, according to Sony.
 
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