However, after years of great success, SCE finally encountered an unprecedented crisis after launching the next generation console PlayStation3. It is difficult to mass-produce the key components of BD optical drive, which leads to a serious shortage of PS3 production capacity, while the high price and lack of corresponding game software support lead to a continuous low purchasing power. It can be said that PS3 has been experiencing a crisis since its listing. Just then, Nintendo's new generation console Wii began to explode with amazing strength, and quickly seized the opportunity with its successful positioning. Under the double attack of X360, which has been on the market for more than a year and has a solid foundation, and the heterogeneous host Wii, which came from behind, PS3 is facing unprecedented challenges.

The setbacks suffered by PS3 and SCE, from the wrong pricing of PS3 to the lack of exclusive game masterpieces such as GTAIV and Assassin's Creed, are all attributed to Kutaragiken's incompetence. Even the CEO of Sony Group, Stringer, publicly accused Kutaragiken of being arbitrary and difficult to cooperate. All this seems to imply that Longji is in the position of SCE and faces the same dilemma as PS3. Until Kazuo Hirai announced that he would take over as CEO of SCEI CEO it essentially marked the general trend of Yoshiki Hayashi living in SCE.

Resign and retire

In June 2007, Sony Corporation and Sony Computer Entertainment Company (SCEI) jointly released a message in official website, Sony, "19 From June, General Yoshiki Hayashi will officially retire and no longer serve as the president, chairman and CEO of SCEI. At this year's shareholders' meeting, SCEI will announce Kutaragiken's successor, who will no longer hold any management positions, but only retain the post of honorary chairman. "It was an ordinary personnel change, but it caused speculation. When Sony PS3 was caught in a battle with Nintendo Wii and Microsoft Xbox360, the news that Kutaragiken was about to leave undoubtedly added fuel to the fire, adding some variables to the already chaotic game console market.