Ken KutaragiAs many of you have probably read already, as of this past Thursday, Mr. Ken Kutaragi has stepped down and retired from his position as chief executive officer and chairperson of Sony Computer Entertainment. Kutaragi will still have a role as an Honorary Chairman, but for all intents and purposes, will no longer be working directly with Sony.

As a little recap, Kutaragi was the inventor of the original Playstation gaming console, and has been dubbed the “Father of the Playstation”, and it’s subsequent sequel systems. With this act, the Playstation franchise became the the most profitable division of Sony. However, Kutaragi will end up passing the torch at the next Sony shareholders meeting on June 19, 2007, where it is said he will then venture off to work on his own projects.

“It has been an exciting experience to change the world of computer entertainment by marrying cutting edge technologies with creative minds from all over the world. I’m looking forward to building on this vision in my next endeavors.”

Additional news and press release information can be found here.

Of course, rumors of conspiracy are abound and in full swing. With Sony having to deal with $2 Billion in losses related to their gaming division over the past year, and the underwhelming failure of Playstation 3 sales, this will do anything but give the company new momentum and direction. Kutaragi admitted himself that the shortage of Playstation 3 consoles sent to North America and Japan retailers, as well as the postponement of the console’s release, led to Sony’s declining strength in software. Sacrificial lamb? Who knows. All that is known now is that Sony is losing a brilliant mind and the original driving force behind the Playstation franchise. What this means for the company’s future will remain to be seen, though it seems like it very well could be just another nail in the coffin for their reputation.