The storied engineer's long career at Sony hit some stumbling blocks with the PS3 launch, leading Kutaragi to be relieved of his day to day duties as president of the company late last year. Some say he was squeezed out to make room for new blood, but officially Kutaragi "has been considering this decision for some time" and considered today's shareholder meeting "the ideal timing to pass on the torch to the new generation of management."
Next for Kutaragi is a post at Sony/Namco/Bandai partnership Cellius, which will focus on content designed for the PS3's Cell chip. We wish him all the best, and personally hope that the train of public gaffes doesn't stop running.