He was forced to retire due to the handling of the PS3 launch but his contribution was hard to dismiss so his was giving Honorary Chairman but had no power.
it was sugar coated but the whole industry knew he was fired and forced to step down.
Ken was replaced with immediate effect.
I was hoping for an answer that wasn't a version of "PS3 got Kutaragi fired".
PS3's challenges and losses had nothing to do with Ken stepping down. He's on record a couple years prior to PS3's launch saying
"my first dream was to retire when I was 50". He was 56 when PS3 shipped, and when one of his so-called bosses (
Shigeo Maruyama, 'STOPPING AT THREE') asked him about PS4 he answered
"[PlayStation 4] is not my responsibility."
Those aren't the words of a man "fired and forced to step down" or "replaced with immediate effect". Those are the words of a man headed for the exit on his own terms. The industry's "kUtArAgI WaS OuStEd" narrative is a load of bunk.
Kaz Hirai also spoke on this and Ken's honorary chairmanship when he was
asked why Ken stepped down.
His honorary chairmanship wasn't some disingenuous public pat on the back. It was an advisory role given out of respect and continuity of purpose for PS3 and PSN. Kutaragi didn't need to hold executive power as Honorary Chairman to effectuate his aims. He held Andrew House's
ear (Jim Ryan's ear, too) and holds Mark Cerny's
ear. That's power enough.
Jim Ryan deserves a cookie, but it's Kutaragi's pie no matter how it gets sliced. Ryan (like every CEO before and after Kutaragi) found his success in Kutaragi's initial hardware/software approach (i.e.,
"The objective was a high-performance, low-price videogame system which also had a design which was easy to write games for."), and in advancing a platform vision/strategy that Kutaragi led with:
Ken Kutaragi (Hot Chips 1999: New Millennium for Computer Entertainment)
⦁ Our vision:
music, movie, computer entertainment oval
Jim Ryan (Sony IR Day 2023)
⦁ Where we intend to meet our users:
music, movie, computer entertainment oval
Ken Kutaragi (2003 Transformation 60 Corporate Strategy Meeting)
⦁
Intercompany collaboration to accelerate
'21st century entertainment experience'
Jim Ryan (Sony IR Day 2022)
⦁ Transformative
Sony Group collaboration to 'amplify IP synergies'
Oh, and one last thing about that pie chart. Tokunaka had the title of CEO, but Kutaragi handled the
Execution...
"There was a meeting with only maybe eight people in it. No other executives. It was just Kutaragi’s team pitching Ohga. Ohga was personally interested in the project. And after Ohga saw the whole presentation, he just said, “Go for it. Do it. This is a project that Sony needs to be in.” He just decided it by himself. No other executives voted, only Ohga. Ohga said “do it” and that became a legendary story. Ken’s career went from almost zero [to essentially running Sony Computer Entertainment]." --
Shuji Utsumi
"As well as being an engineer, I have been involved in the business side of things for many years. I helped start the company, and I have always been involved in business decisions". --
Ken Kutaragi
'Unlike most game consoles at the time, the PlayStation instantly became a showcase for 3D graphics. And unlike most engineers, Kutaragi had overseen nearly every aspect of the managerial and business deals that brought it together'. --
Polygon