Tokyo - Sony Corp. announced on Thursday that Sony Computer Entertainment chief executive Ken Kutaragi -- developer of the PlayStation video game console -- will retire in June.

Kutaragi, who relinquished day-to-day management of the company as president in December, will be replaced by current SCE president Kaz Hirai.

Problems with production and the $600 price tag for Sony's PlayStation 3 have put the console in third place, behind Nintendo's next-generation Wii and Microsoft's Xbox 360, although the company's PlayStation 2 continues to generate strong sales.

Kutaragi will remain an honorary chairman and adviser to the company.

"Mr. Kutaragi has said that he has been considering this decision for some time," Sony Computer Entertainment America spokeswoman Kimberly Otzman told the Associated Press.

"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."

Related Links:
http://biz.yahoo.com/ap/070426/sony_playstation_chief.html (AP)