The chief executive of Sony Computer Entertainment Inc and the inventor of the original Playstation, Ken Kutaragi yesterday stepped down from his position at Sony. Back in April, Kutaragi confirmed that he would be retiring from his position in June, but the news has still come as a surprise to many in the industry.

"Mr. Kutaragi has said that he has been considering this decision for some time," Sony Computer Entertainment America spokeswoman Kimberly Otzman said in a statement. "Sony and SCE will continue to seek Mr. Kutaragi's input and ideas from a broad perspective, while continuing to support him as much as possible in the realization of his dreams."

Kutaragi has confirmed that he wishes to continue to innovate within the industry, "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."

The shake-up in the video-game division comes amid broader problems for Sony and although Kutargi said that he'll maintain a close relationship with the consumer electronics firm his future projects will be largely independent of Sony.

Sony had been looking to the third generation of its PlayStation console to put it back on top of the gaming world, a position Mr Kutaragi secured for the firm with the launch of the first PlayStation back in 1994. As it stands, Nintendo and Microsoft are way ahead of the game and Sony will be looking at newly promoted Kaz Harai to drive sales of the PS3.