Sony Computer Entertainment Inc. and Sony Corporation have jointly announced today that Ken Katuragi, representative director, chairman and group CEO of SCEI will retire from his executive position, effective June 19 2007.

Katuragi won't be leaving the company for good, though. He is stepping back from his role in executive management to serve as honorary chairman of SCEI and provide insight and support as senior technology advisor to Sony boss, Sir Howard Stringer. Kazuo Hirai, who is currently the president and group COO of SCEI, will take taking Katuragi’s place.

“Mr. Kutaragi will now apply his extensive technological knowledge and leadership skills to take on new challenges beyond the world of PlayStation. 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," reads a statement from Sony.

"I am happy to graduate from Sony Computer Entertainment Inc. after introducing four platforms to the PlayStation family," said Ken Kutaragi.

"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 endeavours."

Click below for more!

Today's news comes just months after Katuragi was relinquished of his role as President of SCEI, rumoured to be in connection to the PS3 launch delays and relatively poor sales of the PSP.

"In a shock move, the PlayStation godfather, Ken Kutaragi, has been eased out of his position as president of Sony Computer Entertainment Inc. (SCEI) and will be replaced by Kaz Hirai, the head of SCEI's US division," reported tutorials-xe.com

The story continues: "Kutaragi loses day-to-to control of the division responsible for the PlayStation line-up, instead becoming chairman and group CEO. The move is likely to be seen as connected to the PS3 launch delays and poor PlayStation Portable (PSP) sales."

Either way, it's a sad day when such an admirable figurehead in the videogame industry decides to move aside (or is otherwise politely shifted) for the next generation of innovators in the industry.