Sony Network Entertainment Chief Quits

Sony Network Entertainment Chief Tim Schaaff, who was brought on board in 2005 to build a unified online content delivery platform to compete with the technology giant Apple, will retire at the end of the year.

" Tim Schaaff, President of Sony Network Entertainment International (SNEI) and Group Executive of Sony Corporation, will retire as of December 31, 2012. Schaaff will remain on the SNEI board of directors as an external director," the Japanese company said in a statement.

Andrew House, the head of Sony's gaming division, will assume Schaaff's responsibilities during the transition phase. However, the company said Schaaff will remain as an external director at the Sony unit but did not elaborate on his future plans.

Howard Stringer, who stepped down as CEO in April, headhunted Schaaff from Apple at a time when Sony was desperately looking for a potential network software business, similar to Apple's iTunes - a platform that can connect all Sony devices. Schaaff was hired as a key person to create and implement what Stringer imaged - a platform that can boost the company's business by linking its electronics operations with its entertainment offerings.

Although the statement did not say why its top executive was leaving, it said Schaaff thanked Stringer and CEO Kazuo Hirai for their tremendous support and guidance. "Together we created something of significant value that will be an important part of Sony's future. I'm grateful to have had this unique opportunity, proud of the commitment my team has demonstrated, and encouraged about Sony's prospects in this strategic area," Schaaff said.

"Tim has been a strong leader within Sony who truly embodied the 'One Sony' spirit by successfully leading corporate-wide initiatives across business units since he joined," said Kazuo Hirai, President and CEO, Sony Corporation.