Twenty years ago, the video-game business was a niche hobby, so nerdy that nerds were embarrassed to be associated with it. Now, thanks in large part to Ken Kutaragi, the president and CEO of Sony Computer Entertainment, video games take in more money than movies. An electrical engineer by training, he joined Sony in 1975, but his gut-check moment didn't arrive until 1990, when Nintendo backed out of a partnership with Sony to build a new video-game machine. Most in the company wanted to cede the battlefield, but Kutaragi believed Sony could go it alone; he led an in-house splinter cell...
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