Ken Kutaragi has stepped down as Sony Computer Entertainment Inc.’s chairman and chief executive, marking a symbolic end to Sony’s dominance in home consoles. The reasons for his departure are detailed below, from CNN.com:

CNN.com wrote:

Kutaragi’s most recent brainchild, the PlayStation 3, has been marred by embarrassing production shortages and a $600 price tag that some fans said was too steep, forcing Sony to give away free games and other marketing gimmicks to spur sales. Sony has also struggled to expand beyond the young, male demographic of “hardcore” gamers — unlike the Wii, which has actively targeted women, young children and older gamers. Sony’s market share has shrunk as a result.

Kutagari will now hold an advisory post at Sony, which probably means he’ll have a lot of free time figuring out what everyone else already knows; Everyone loves an underdog. And winning a console war by setting your price at twice the cost of your competition makes you Ivan Drago to the Wii’s Rocky Balboa. And we all know how that story ends.

Even Communist Russians love Rocky.