TOKYO, Japan (AP) -- The chief architect of Sony's PlayStation game console stepped down on Tuesday as the Japanese company struggles to defend its dominance in the video game industry and revive its reputation as an electronics pioneer.
Though no longer a board member, Kutaragi will hold an advisory post at the gaming unit, according to SCE official Sayoka Henmi.
The departure of Kutaragi, an icon among gamers, marks the end of an era at Sony Corp. that saw the company long dominate the video game industry with its flagship PlayStation consoles.
But it also highlights troubles at Sony amid a series of blunders over the rollout of its PlayStation 3 and intense competition from Nintendo Co.'s popular Wii console and Microsoft's Xbox 360.
Kutaragi's most recent brainchild, the PlayStation 3, has been marred by embarrassing production shortages and a $600 price tag that some fans said was too steep, forcing Sony to give away free games and other marketing gimmicks to spur sales.
Tokyo-based Sony shipped 5.5 million PS3 machines in the fiscal year through March 31, fewer than the 6 million the company had targeted. Nintendo shipped 5.84 million Wii consoles worldwide during the same period.
The PS3's hefty startup costs have weighed heavily on the company's fight to drive up profit in its core electronics division. Sony is not expecting to post a profit in its game business until the fiscal year ending March 2009.
Noel Francis G. Belleza
IV Graviton
July 27, 2006
http://www.cnn.com/2007/TECH/biztech/06/19/japan.sony.ap/index.html
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