Kutaragi Steps Down at Sony

The end of an era has arrived at Sony as the father of the PlayStation, Ken Kutaragi, stepped down on Tuesday.

His resignation was announced in April, although last year he was stripped of control of the daily operations of the gaming unit he helped create. He was also said to be at odds with CEO Howard Stringer over the direction of the unit.

Sony Computer Entertainment will now be headed by Kazuo Hirai, who was formerly the head of the American arm of the PlayStation division and was promoted to president of the worldwide arm late last year.

Hirai is widely considered an ally of Stringer's, which likely helped him to land the position, say company watchers. Kutaragi will stay with Sony, however only in an advisory position, says the company.

Kutaragi's stubbornness and sometimes argumentative personality may have cost Sony dearly in its fight for next-generation console supremacy. He questioned Sony's manufacturing practices, and went over budget in development.

These problems may prevent Sony's gaming unit from posting a profit for at least two years, and its need to recoup some of these costs has kept the console's price too high for many consumers.