Suzuki, who has been with Sony since 1984, will "assist [Hirai] in managing the day-to-day operations of the PlayStation business", with a specific responsibility for strategy and product planning.

He'll assume his new position on July 1.

Earlier this morning Sony announced a major restructuring of their company, with Sony CEO Howard Stringer being named president of the company and the formation of two new groups within the company, the New Consumer Products Group and the Networked Products and Services Group.

As head of that latter group, Hirai will oversee the Walkman lines, Sony Media Software and Services, which develops a common service platform across Sony products, and Sony Computer Entertainment.

The goal of this new group is to "maximize the potential and pace of Sony's innovation and to enhance profitability." Integral to this process, Sony says, will be the utilization and expansion of the Playstation Network.

What does that mean to gamers? It sounds like Sony is trying to do a better job of getting their different groups to work better together, which could mean greatly expanded Playstation Network offerings and some interesting product development. PSP phone? PSP Walkman? Who knows?

Sony Corporation Announces Major Reorganization and New Management Team Led by Howard Stringer [Sony]

amBX is a technology originally developed for the PC by Phillips Research that incorporates lighting, rumble, and even air-flow peripherals to help deliver real-world sensory experiences in video games and television entertainment. Now that technology makes the jump from the PC and specialty television market to the console gaming market, with a Tools and Licensing Middleware agreement that allows amBX to develop its technology for use on the PlayStation 3.

“This is a major milestone in the development of amBX as a ubiquitous standard for entertainment sensory experiences,” commented Jo Cooke, Chief Marketing Officer, amBX. “amBX has already proved incredibly popular and successful within the PC games, music, movies and apps markets and the Tools & Middleware License agreement with SCEI will allow us to bring amazing light, rumble, sound and air movement experiences to game users.”

With amBX already licensing its technology to major players in the gaming world, it might not be long before you're plugging light strips and fans into your PlayStation 3 in order to get the most out of your gaming experience.

Personally, I still see the whole amBX thing as more of a gimmick than anything else. This agreement shows that folks with a bit more insight into industry trends than I have seem to think otherwise. What about you? Would you fork over your hard-earned cash in order to make your television pulse color sympathetically with your PlayStation 3 games, or is this simply technology for those with far too much spending money on their hands?

While SOE has done its share of PlayStation 2, PlayStation 3 and PSP development in the past, we would expect that the alignment with SCEI will mean additional focus on PlayStation output. Potentially good news for the PS3's first-party line up and the PlayStation Network.

The official word is that SOE will continue to develop for the PS3 and PC and that president John Smedley will be one rung under Hirai on the corporate ladder. All that officialness is in the following press release on the matter.

SONY COMPUTER ENTERTAINMENT INC. AND SONY ONLINE ENTERTAINMENT LEVERAGE EXPERTISE IN THE COMPUTER ENTERTAINMENT INDUSTRY

SAN DIEGO, CA & TOKYO, JAPAN (March 13, 2008) — In a strategic move to closely align itself with the strong growth of the worldwide online gaming market, Sony Computer Entertainment Inc. (SCEI) announced today that Sony Online Entertainment (SOE) will report to Kazuo Hirai, President and Group CEO, SCEI, effective April 1, 2008. The new structure is designed to mutually benefit both companies by further accelerating the PlayStation business through SOE's strong online gaming expertise.

"I am excited to be able to work with SOE even more closely, as online games and services become a more integral part of the PS3 entertainment experience," Hirai said. "This new structure will allow us to take full advantage of the extensive breadth of expertise of the two companies and increase our range of exciting entertainment offerings to our consumers."

San Diego-based SOE is currently part of Sony Pictures Entertainment. Under the new structure, SOE will continue to develop its games for the PC and the PLAYSTATION®3 (PS3®) computer entertainment system, and SOE President John Smedley will report to Hirai.

"We are thrilled to become a part of the incredible team that has made PLAYSTATION 3 the premier platform for next generation online gaming," said Smedley. "This move is going to broaden our capabilities and expand the development of our products into new and exciting directions."

About Sony Online Entertainment
Sony Online Entertainment (SOE) is a recognized worldwide leader in massively multiplayer online games, with hundreds of thousands of subscribers around the globe. SOE creates, develops and provides compelling entertainment for the personal computer, online, game console and wireless markets. Known for its blockbuster franchises and hit titles including EverQuest®, EverQuest® II, Champions of Norrath®, Untold Legends™, and PlanetSide®, as well as for developing Star Wars Galaxies™, SOE continues to redefine the business of online gaming and the creation of active player communities while introducing new genres on various entertainment platforms. Headquartered in San Diego, CA, with additional development studios in Austin, TX, Seattle, WA, Denver, CO and Taiwan, SOE has an array of cutting-edge games in development.

About Sony Computer Entertainment Inc.
Recognized as the global leader and company responsible for the progression of consumer-based computer entertainment, Sony Computer Entertainment Inc. (SCEI) manufacturers, distributes and markets the PlayStation® game console, the PlayStation®2 computer entertainment system, the PSP® (PlayStation®Portable) handheld entertainment system and the PLAYSTATION®3 (PS3®) system. PlayStation has revolutionized home entertainment by introducing advanced 3D graphic processing, and PlayStation 2 further enhances the PlayStation legacy as the core of home networked entertainment. PSP is a new handheld entertainment system that allows users to enjoy 3D games, with high-quality full-motion video, and high-fidelity stereo audio. PS3 is an advanced computer system, incorporating the state-of-the-art Cell processor with super computer like power. SCEI, along with its subsidiary divisions Sony Computer Entertainment America Inc., Sony Computer Entertainment Europe Ltd., and Sony Computer Entertainment Korea Inc. develops, publishes, markets and distributes software, and manages the third party licensing programs for these platforms in the respective markets worldwide. Headquartered in Tokyo, Japan, Sony Computer Entertainment Inc. is an independent business unit of the Sony Group.

SCEA's Playstation 3 Folding@home project, which went live back on March 22, recently topped one million user, meaning that about 3,000 PS3 users have registered for Folding@home a day since the software went live on the console.

"Since partnering with SCEI, we have seen our research capabilities increase by leaps and bounds through the continued participation of Folding@home users," said Vijay Pande, Associate Professor of Chemistry at Stanford University and Folding@home project lead. "Now we have over one million PS3 users registered for Folding@home, allowing us to address questions previously considered impossible to tackle computationally, with the goal of finding cures to some of the world's most life-threatening diseases. We are grateful for the extraordinary worldwide participation by PS3 and PC users around the globe."

Thanks to all of those PS3 owners willing to tie their console to the network, and pay the resulting electric bill, PS3 users make up about 74 percent of the total teraflop computing power of the Folding@home project.

Well done Sony, well done. Oh, speaking of well done, Team Kotaku is currently ranked number 106 at folding@home. If you haven't signed up (for Folding@home) and own a PS3, you really should.

One Million PLAYSTATION(R)3 Users Participate in Folding@home Research Project

PS3(R) Users Support Research Efforts of Parkinson's, Alzheimer's and Certain Forms of Cancer

FOSTER CITY, Calif., Feb. 4 /PRNewswire/ — Sony Computer Entertainment Inc. (SCEI) today announced that since PLAYSTATION(R)3 (PS3(R)) took part in Stanford University's Folding@home(TM) project on March 22, 2007, the total number of registered users has reached over one million users. This equates to roughly 3,000 PS3 users registering for Folding@home per day or 2 new registered users every minute worldwide.
"Since partnering with SCEI, we have seen our research capabilities increase by leaps and bounds through the continued participation of Folding@home users," said Vijay Pande, Associate Professor of Chemistry at Stanford University and Folding@home project lead. "Now we have over one million PS3 users registered for Folding@home, allowing us to address questions previously considered impossible to tackle computationally, with the goal of finding cures to some of the world's most life-threatening diseases.
We are grateful for the extraordinary worldwide participation by PS3 and PC users around the globe."
Folding@home aims to understand protein folding and misfolding, and how these are related to diseases and many forms of cancer. When proteins do not fold correctly, there can be serious consequences, including many well-known diseases, such as Alzheimer's, Huntington's, Parkinson's disease, and many cancers and cancer-related syndromes.
Prior to the inclusion of PS3 in March 2007, the Folding@home project leveraged the distributed computing power of personal computers from around the world. Now a network of roughly 10,000 PS3s can accomplish the same
amount of work as a network of 100,000 PCs, and have the ability to perform research simulations in weeks rather than years. In fact, it took just six months after PS3 joining Folding@home for the project to surpass a petaflops (*1), a computing milestone that had never been reached before by a distributed computing network.
On September 16, 2007, Folding@home was recognized by Guinness World Records(TM) as the world's most powerful distributed computing network.
Currently PS3 users make up approximately 74 percent of the total teraflop computing power of the Folding@home project. For more information, please see official website: http://www.scei.co.jp/folding/en/.

(*1) A petaflops is the ability of a computer to do one quadrillion floating point operations per second (FLOPS).

The company's Japanese division also recently added a new trademark, known as the Broadcasting Engine, the logo of which can be seen above. The trademark info hints less at a software release, instead covering hardware bases on cellular phones, computer mice, video cameras, dvd players, video game machines, set-top boxes and vending machines. This is intermixed with multiple mentions of downloadable media, like music, movies, television programs and video games.

The Broadcasting Engine may be the name of the technology that powers the PlayStation Network Sir Howard Stringer was referring to recently in an interview that took place in Moscow. He spoke of Sony's plans to integrate the PlayStation Network throughout its consumer product line, connecting PlayStation 3s and PSPs to Bravia televisions and Sony Ericsson phones.

The father of the Playstation officially stepped down today, ending an era that saw the launch of three consoles and Sony's entry into the gaming market.

Kutaragi announced his plans to leave the company as all but an "honorary chairman" back in April. Kazuo Hirai will be stepping into his large shows to take over day-to-day responsibilities as the head of Sony Computer Entertainment Inc.

It's doubtful we will see any substantial change in the company's operations in the weeks leading up to E3, but I'm sure this move will trigger some shifts in the way Sony does business down the line.

Father of Sony PlayStation steps down [CNN]

The absolutely absurd circus surrounding the Church of England's sudden discovery that some of their buildings are indeed part of the modern landscape that make up the cities where games take place, seems to be drawing to a close.

The BBC reports today that Sony apologized to CoE for "causing any offence" for including a representation of the Manchester Cathedral in their popular PS3 shooter Resistance Fall of Man, but that Sony is pretty sure they had "sought all necessary permissions" to use the church.

Despite the apology and the apparent permission, the church still expect Sony to pull the game, which is, in a word, idiotic. Let me save you a bit of time Church of England. Under U.S. law (where the game was made) a company normally doesn't need to seek permission to depict a fictional event in a real place. Brian Crecente

Sony Apologizes to Church [BBC]

Roughly 80 to 100 employees of Sony Computer Entertainment of America's Foster City headquarters were laid off today, Kotaku has learned from a source who was among those asked to hand in their badge and keys before leaving the premises.

"In an effort to accurately align the company to meet the changing needs of our consumers and of our industry, Sony Computer Entertainment America has found it necessary to analyze our current business and to restructure the company as necessary to continue our standing as the market leader," SCEA spokesman Dave Karraker told Kotaku this evening, when contacted for comment. " These restructuring efforts are currently underway and do include the streamlining of our operations and other initiatives to further strengthen the business, reduce costs and increase operational efficiency. "

Karraker declined to comment on the number of employees affected.

The lay-off meetings, which came as a surprise to even middle management, started in the morning and ran throughout the day, the source said. Departments were separated into two groups, with those being laid off meeting first and those remaining behind meeting next in half-hour sessions. Those who were laid off were asked to leave their belongings at the office and either have their manager pack up their desk for them or schedule an appointment some evening to fetch their possessions. Those laid off were give a fair severance package, the source added.

The lay-offs, which were preceded by a months long hiring freeze, were prompted by SCEI's call for cut backs which in turn was spurred by the company's multi-billion dollar losses and the sky-rocketing cost of PS3 game development, upper management told those who remained at the office.

The day of across-the-board lay-offs come just month after SCEE was hit by mammoth lay-offs which hit hundreds. Brian Crecente

I am happy to graduate from Sony Computer Entertainment Inc. after introducing four platforms to the PlayStation family. 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.

SCEI Corporate Release [SCEI, thanks R. Hunter!]

Gizmodo editor surpemeo was on hand to check out the new Playstation 3 Folding@home at Stanford University today and sent us a barrel-full of pictures to peruse. Sexy! Brian Crecente

But when I asked them to double check they became a bit unclear and said they would look into it. This morning Nick Sharples, director of their PR team, was kind enough to send along some more details about the newly formed Cell-centered game developer.

It appears that Namco Bandai's Isao Nakamura, best known for creating the Ridge Racer franchise, will actually be the director of the company while the other board members will be "absentee directors" who will support Nakamura's role.

A bit more details:

The new company, combining development technologies and flexible way of thinking which both SCEI and NBGI have, will develop new contents business in order to create interactive and "surprising" contents.

Isao Nakamura is known for creating the Ridge Racer franchise but the new content to be created by CELLIUS is not limited to racing genre only. CELLIUS office will be located in Nakameguro, separately from SCEI or Namco Bandai offices and will initially start with around 30 people.

By saying that the company is "not limited" to the racing genre, they certainly imply that will be one of the things they will be doing. I'll leave it to you to finish this post with some Kaz-speak.

Sony and Bandai Namco have announced a joint venture to develop new content for the Cell chip including games for the PS3 and content for mobile phones and personal computers, Bloomberg reports.

The two companies are investing about $821,000 to form Cellius, a company that will be headed up by Ken Kutaragi, the father of the Playstation. The company will be formed on March 6 and will 51 percent owned by Bandi Namco and 49 percent by Sony Computer Entertainment Inc. Bandai Namco's president and another exec, as well as a second senior Sony exec will also on the newly formed company's board.

The news comes months after Kutaragi was promoted out of daily operations of Playstation 3 decisions. It will be interesting to see what sort of insight Kutaragi brings to the game development side of things.

Hit the jump for the full Bloomberg story. Brian Crecente

Sony Corp., the world's largest maker of game consoles, said its PlayStation unit will develop games with Namco Bandai Holdings Inc. to help take share from Microsoft Corp. and Nintendo Co.

Namco Bandai will own 51 percent of the venture, named Cellius Inc., with Sony holding the rest, Sony said in a faxed release today. The venture will begin operations on March 6.

Cellius will use Sony's Cell chip, which powers PlayStation 3, to create games for the console and content for mobile phones and personal computers, Sony Computer Entertainment Inc. spokesman Satoshi Fukuoka said today. He would not give earnings forecasts or other details.

The alliance may help Sony recoup the 200 billion yen ($1.65 billion) it spent developing the Cell with International Business Machines Corp. and Toshiba Corp. Sony is expecting the chip, which makes the PS3 about 35 times faster than the PS2, to attract gamers with sharper graphics and more complex play.

The Cell chip is also part of Sony's strategy to beat Microsoft and Apple Computer Inc. in controlling the digital home, a future network linking televisions, music players, game consoles and other appliances to the Internet.

Sony, Namco Bandai Ally to Jointly Make Games for PlayStation 3 [Bloomberg]

Michael Pachter, Wedbush Morgan Securities analyst, doesn't really see Ken Kutaragi's promotion as a way to remove him from the game, but rather as a way to prepare him for heading up the entire company.

Speaking to GameDaily BIZ about the management shuffle, Wedbush Morgan Securities analyst Michael Pachter said, "I think it's prudent succession planning. Kutaragi is the visionary, and his work on PS3 was done at launch. They need to groom him to replace Stringer. The rest of the guys are competent, experienced, and loyal. I think each of the other moves made sense. In time, I think you will see Kutaragi given responsibility for other functions, like Blu-ray."

As Sony President Ryoji Chubachi explained it to the Nikkei, "Mr. Kutaragi's strength is his knowledge of technology. His position is, of course, chief executive, but this means he will especially be looking closely at the area of technological development."

I've come to realize that Sony uses the volcano school of management, heat from bad decisions and poor management builds until a key person involved in the decision-making process is pushed up and up and up and finally ejected entirely from the company.

I'm going to patent that shit, Brian's School of Volcano Management.

Kutaragi Being Groomed to Replace Stringer - Pachter [Game Daily]

OK, so I am not, despite what some of you might think, a Playstation hater. In fact, I'm, as so many third-party developers like to say, a console agnostic.

I like all of the systems for different reasons. But no matter what your thoughts are about the Playstation 3, you have to acknowledge that the lead up to the launch and launch itself have not come and gone without a hitch.

Kaz Hirai, who I think made a stunning come back at the LA PS3 event, was, in many eyes, the face of the Sony E3 flop. So I think I'm probably not alone in expressing a wee bit of shock about today's news that Kaz Hirai has just been promoted from president and chief executive officer of Sony Computer Entertainment America to president and group chief operating officer for SCEA parent company Sony Computer Entertainment, Inc. in Tokyo.

Jack Tretton will be stepping up to take over for Hirai, who, by the way, got his promotion because Ken Kutaragi, who was the president and CEO of SCEI has now become chairman and group CEOfor SCEI. There's actually a whole daisy chain of promotions that occurred around the world and likely masks some diabolical plot, or perhaps a firing, I'm not sure which.

I do love how in one of the two press releases about the tons o promotions and shifts, they say that Kaz "has made outstanding contributions in growing Playstation and Playstation 2 to the number one computer entertainment platforms in North America." Strangely, there's no mention of the PS3.

Hit the jump for the two press releases. I'm sooo confused. Brian Crecente

Sony Computer Entertainment America Elevates Jack Tretton to President and
CEO, Kaz Hirai Named President and Group COO of Sony Computer Entertainment,
Inc.

FOSTER CITY, Calif., Nov. 30 /PRNewswire/ — Sony Computer Entertainment
America (SCEA) today announced that Jack Tretton has been named president and
chief executive officer for the company, replacing Kaz Hirai who will be
appointed president and group chief operating officer for SCEA parent company,
Sony Computer Entertainment, Inc. (SCEI) in Tokyo, effective December 1, 2006.
Tretton was formerly SCEA executive vice president and co-chief operating
officer.
(Photo: http://www.newscom.com/cgi-bin/prnh/20061130/SFTH053
http://www.newscom.com/cgi-bin/prnh/20020701/SFM066LOGO )
"Jack has been with SCEA since its formation and helped pilot the debuts
of the original PlayStation(R), PlayStation(R)2 (PS2(R)), PSP(R)
(PlayStation(R)Portable) and the successful launch of the recently released
PLAYSTATION(R)3 (PS3(TM)) computer entertainment system," said Hirai. "Given
his experience and exceptional reputation in the industry, I can think of no
better person to assume the helm of the PlayStation brand in the US, Canada
and Latin America."
A member of the original management team chartered with launching
PlayStation in North America in 1995, Tretton brings more than 23 years of
consumer product experience to his new role at SCEA, including 20 years
dedicated to the computer entertainment space. He has managed numerous
departments within SCEA, including sales, business development, merchandising,
marketing and product development. Prior to joining SCEA, Tretton held posts
at software publishers JVC Musical Industries and Activision, as well as
Majers Corporation and Duracell, USA.
"I am determined to build upon the momentum that Kaz and the entire SCEA
staff has developed for the entire PlayStation family of products here in the
US over the years," said Tretton. "Moving forward, we will remain focused on
the continued market leadership of the PlayStation brand, driving consumer
demand for the new PS3, and existing platforms such as PSP and PS2, which
continue to excel in the marketplace."
Tretton replaces SCEA veteran Kaz Hirai who will be promoted to president
and group chief operating officer of SCEI. Hirai, who had been with SCEA since
1995, will oversee the global operations of SCEI, filling the role previously
held by Ken Kutaragi, who will be appointed chairman and group CEO for SCEI.
Tretton assumes the post of president and chief executive officer for SCEA
effective December 1, 2006.

SCE Announces New Management Team

Ken Kutaragi, Chairman and Group CEO and Kaz Hirai, President and Group COO

TOKYO, Nov. 30 /PRNewswire/ — Sony Computer Entertainment Inc. (SCEI)
today announced the appointment of Ken Kutaragi, President and Group CEO, as
Chairman and Group CEO, and Kaz Hirai, President and CEO of Sony Computer
Entertainment America (SCEA), as President and Group COO of SCEI, effective
December 1, 2006. The company also announced the appointment of Akira Sato,
member of the board of directors, as Vice Chairman, and David Reeves,
President and CEO and Co-COO of Sony Computer Entertainment Europe (SCEE), as
Deputy President of SCEI in addition to his current responsibility at SCEE,
also effective December 1, 2006. Masaru Kato will remain in his current
position as Deputy President and Group CFO.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020701/SFM066LOGO )
Ken Kutaragi will continue to oversee the entire SCE Group as chief
executive officer, and will fully exercise his power to reinforce and further
accelerate the development of the PlayStation(R) business.
Kaz Hirai joined SCEA in 1995, and was first appointed Executive Vice
President and COO in 1996, President and COO in 1999 and President and CEO in
2003, and during these years, Hirai has made outstanding contributions in
growing PlayStation and PlayStation(R)2 to the number one computer
entertainment platforms in North America. In his new capacity as President and
Group COO of the entire SCE Group, he will bring his strong leadership skills
and experience to fulfill his responsibilities as head of operations
worldwide.
David Reeves, joining SCEE in 1995, has played a central role in ramping
up the PlayStation business in Europe/PAL territories especially in the field
of sales and marketing. In 2005, he assumed the position of President and CEO
of SCEE, fully proving his abilities to maintain consistent business results
and further expanding the PlayStation markets in Europe/PAL territories
including Russia, Middle-East, Africa, Australia and New Zealand. In assuming
the position of Deputy President of SCEI, he will effectively leverage his
talents and skills in the management of SCE Group.
Akira Sato joined SCEI in 1993 as one of the founding members. As Deputy
President and COO, he made numerous contributions especially in building a new
business model in the world of computer entertainment as well as in the area
of game software development by discovering new talent and introducing unique
content. In November 2005, he stepped down from operating responsibilities,
and by resuming his executive role as Deputy President, he will look after the
development of new business areas.
Masaru Kato will continue to be deeply involved in group management with
his expertise as chief financial officer.
With the strong leadership of the new management team, SCEI will head
towards a new generation of computer entertainment.

* SCEI Members of the Board of Directors (as of December 1, 2006)

Ken Kutaragi Chairman and Group CEO
Akira Sato Vice Chairman
Kaz Hirai President and Group COO
Masaru Kato Deputy President and Group CFO
David Reeves Deputy President
Howard Stringer
Ryoji Chubachi
Kenshi Manabe
Shigeo Maruyama

Price setting is always a headache for us. No game machines are comparable to the PS3, which is neither a genuine game console, home electronics [product] nor a personal computer. It is a new kind of product...

[It will be] consumers who decide whether it's expensive or cheap. If a product offers charm, then buyers will be convinced.

Unfortunately, the last thing PS3 has right now is charm. For charm, look no further than the Wii. We're also confused by what he means by the statement that no game machines are comparable to the PS3? Price wise? Certainly. Graphics wise? The best anyone's said about the PS3's graphics capabilities is a pregnant pause followed by the words, "they're nice... I guess." Online capabilities? No one really knows what that entails yet. So he's basically saying no game machines compare to the PS3 because the PS3 is less a game console than a way to force Blu-Ray into a lot of people's homes. Too bad gamers care a lot less about Blu-Ray than they do about great games, pretty graphics and innovation.

Kutaragi defends PS3 price [Eurogamer] (Image from Be Confused)