Speaking to GamesIndustry.biz at the second Game Republic New Horizons event in the UK, Kutaragi clarified the motives behind Sony's move into consoles and reflected on the wider evolution of the industry.
The widely told origin story centers on the failed SNES CD-ROM add-on partnership between Sony and Nintendo in the early 1990s.
After Nintendo opted to take its CD-ROM ambitions elsewhere—announcing a separate arrangement with Philips—Sony moved forward with a dedicated console.
The PlayStation launched in Japan on December 3, 1994, and reached North America in September 1995; the system ultimately sold more than 100 million units worldwide, establishing Sony as a dominant force in the home console market and outpacing Nintendo's fifth-generation Nintendo 64, which sold roughly 32.9 million units after its 1996–1997 releases.
Kutaragi rejected the shorthand version of events that casts Sony's entry as an act of vengeance.
He told GamesIndustry.biz that he never set out to "crush" Nintendo; rather, he described Nintendo's withdrawal from the partnership as a jolt that transformed into an opportunity.
In his words, what began as a "bad shock" became a liberating moment that allowed Sony to pursue its own direction in hardware and software.
He also addressed his personal relationship with games and the industry today.
Kutaragi said he no longer plays video games because his responsibilities running large organisations and multiple companies left him little time for personal play.
On modern development trends, he criticized the escalating scale and cost of some AAA projects, suggesting that multi-year productions involving thousands of developers are becoming unsustainable.
Kutaragi warned that rising costs — which he links in part to the growing use of AI — are making the current hardware market unhealthy, and he suggested that advances in AI and cloud technologies could eventually reduce the need for traditional consoles.
Those comments arrive against a backdrop in which Nintendo continues to define its strategy around platforms such as the Nintendo Switch (released March 3, 2017) and digital services including the Nintendo eShop.
By restating the origins and consequences of the SNES-era breakup, Kutaragi's remarks provide a reminder that Sony's PlayStation history is more complex than simple corporate rivalry, and that veteran industry figures remain vocal about the challenges facing game development and hardware economics today.