Sony replaces president of PlayStation unit

Ken Kutaragi, the developer of Sony Corp.’s PlayStation game console, stepped aside from day-to-day management of the unit after production delays forced the company to slash shipment targets.

Kaz Hirai, head of the U.S. game division, will take over as president of Sony Computer Entertainment, Sony said Thursday. Kutaragi, 56, will become chairman of the unit.

Sony Chief Executive Howard Stringer is counting on the PlayStation 3 to revive a company that has lost almost half its market value in the last six years.

Kutaragi, a 30-year Sony veteran, cut 2006 shipment targets by half in September because of parts shortages.