Sony expects to have a large $2 billion USD loss for its video game unit, fueled by slow sales for the PS3 and high operating costs for the console.
Kutaragi wil be replaced by Kazuo Hirai, the president of the worldwide PlayStation unit. Hirai is considered an ally of CEO Howard Stringer, the man who many feel asked for the resignation of Kutaragi.
Stringer and Kutaragi had a few disagreements over the years, and according to the Wall Street Journal, one of those issues was Kutaragi's lack of communication with other Sony officials. The disagreement eventually lead to Kutaragi losing control of daily operations. Further angering officials, Kutaragi went far over budget for PS3 development costs and questioned Sony's manufacturing practices.
Source:
BetaNews