Sony’s PlayStation unit shakes up top management
Ken Kutaragi will leave his position as president of Sony Computer Entertainment Inc (SCEI), the Sony unit responsible for the PlayStation family of games consoles, and hand day-to-day control of the company to Kaz Hirai, previously head of SCEI’s US unit, the company said today.
The surprise shake-up will see Kutaragi become chairman and group chief executive officer while Hirai takes on the posts of president and group chief operating officer. It comes less than three weeks after the company launched its PlayStation 3 console in Japan and the US — a launch that has been hit by a string of problems.
The console was originally due to go on sale in early 2006 but was delayed until November because the copy protection standard for the console’s Blu-ray Disc drive wasn’t ready. As the November launch came closer, Sony was forced to again revise its plans because of a component shortage. That meant the European launch was pushed back until March 2007 and retailers in Japan and the US would get fewer consoles than anticipated.
SCEI was also pushed to reduce the price of the console in Japan prior to its launch. After announcing that the cheaper of two models would cost ¥62,790 the product was widely criticised for being too expensive and SCEI cut the price to ¥49,980.
The company also faces problems in its handheld business. The PlayStation Portable (PSP) was launched with much fanfare in 2005 but business hasn’t gone as expected. In the last full fiscal year the company sold around 13 million of the devices. Typically PlayStation sales rise for several years before falling, but SCEI forecast sales this year would be around 12 million units. But business has been much worse than expected, and the estimate now stands at nine million.