PS3 News: Sony CEO Upset with Ken Kutaragi - PS3 News

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Sony CEO Upset with Ken Kutaragi

  Remember some months ago we brought you a story about the corporate shuffle that occurred over at Sony? It took Ken Kutaragi out of the President's seat at Sony Computer Entertainment, and he was replaced by Kaz Hirai. Well, in the corporate world, reshuffles are never a good indication and so the move raised a lot of eyebrows. Around that time publishers and developers had been fairly annoyed with the way Kutaragi handled the securing of exclusive content for the PS3, and it seems like those reports had credence.

   Sony's CEO Howard Stringer went on record to explain the situation, and told the Wall Street Journal that his relationship with Kutaragi wasn't great. Stringer noted that Kutaragi was "uncommunicative" and difficult to work with. Stringer went on to mention that Kutaragi often made decisions without the permission of the higher-ups, including Stringer himself. Kutaragi would also keep Stringer out in the dark in regards to production issues.

   Kutaragi apparently called for the price-cut of 20GB PS3's by 20% before the unit launched. A move that really upset Stringer even though he did agree to it: "Financially it wasn't one of my best moments," he said. What's more is that Kutaragi went over the allotted budget developing the PS3 without consulting anyone about it.

   To really illustrate just how bad scenario is, Stringer said: "I've had dinner with [Mr. Kutaragi] more times than I've had dinner with my wife, and that's not really healthy," he said. The attempts to form a working alliance where met with gloom.

3/5/2007 Arnold Katayev

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