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Sony Announces Merger Of PlayStation Businesses To Form Sony Interactive Entertainment

January 26, 2016 by Carlos Chism

No more Sony Computer Entertainment.

Sony announced today that it has merged its two major PlayStation businesses, Sony Computer Entertainment (SCE), and Sony Network Entertain International (SNEI), together to form Sony Interactive Entertainment (SEI).

SENI, which has run the PlayStation Network until this point, will meet the hardware side of the company in SCE. The merger effectively unifies both software and hardware. Andrew House, current President and Global CEO of SCE, will serve in the same position in SIE. The company will be based in San Mateo, California, with “key global business operations” in Toky and London.

House addressed the merger in a statement:

“Along with our business partners, SIE will develop pioneering services and products that will continue to inspire consumers’ imaginations and lead the market. We will work hard to maximize corporate value by coordinating global business operations across San Mateo, Tokyo, and London by leveraging local expertise.”

The integration will go into effect on Friday, April 1. Shuhei Yoshida, current President of Sony Worldwide studios, had to clarify in a series of Tweets that he will keep his current title, but report to Shawn Layden.

@sheer_sagacity no, I'll report to Shawn.

— Shuhei Yoshida (@yosp) January 26, 2016

Sony Computer Entertainment includes SCEE, SCEJA, and its other regional arms. All are included in the merger. The new corporate structure will look like this, according to the company:

Much of the business jargon in Sony’s announcement seems to read like the company is reorganizing itself to better compete in all areas, but particularly in its network and cloud services. This could prove to be a move to better integrate PSN and PS Now into the PS4, PSVR, and especially future hardware. 

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