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Sony Forms New Interactive Entertainment Unit Around PlayStation

Sony is merging its Sony Computer Entertainment unit and Sony Network Entertainment International unit into a new company, Sony Interactive Entertainment (SIE). This will bring together all PlayStation hardware, software, content and network services operations under one roof in San Mateo, Calif.

“The formation of SIE will create an even stronger PlayStation,” Shawn Layden, president and CEO, SCE, posted on Sony’s PlayStation blog. “That means an even bigger emphasis on developing pioneering platforms like PS4 and PlayStation VR, world-class games from our World Wide Studios development teams, and innovative network services such as PlayStation Vue.”

Andrew House, who will be CEO of the new division, said 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.”

According to Sony, the key corporate strategies of SIE are to retain and expand PlayStation user engagement, increase average revenue per paying users and drive ancillary revenue. “SIE will vigorously expand the PlayStation business by delivering an integrated experience built around best-in-class games and network services to consumers worldwide. Furthermore, as the game and network service segment within Sony Group, SIE will work on expanding sales and operating income.”

 In a statement, Sony further explained the move. “The market environments of hardware, software, content and network services are ever evolving, and it has become important for both SCE and SNEI to unify their business strengths under one entity with a single focus, ensuring PlayStation continues to offer ground-breaking entertainment experiences to consumers around the world.”

The strategy is in line with Sony’s recent moves in other consumer categories in which the company has refocused its attention on maximizing revenue at the expense of market share and concentrating on the upper ends of the product market.

PlayStation 4 has been an unabashed success for Sony, which said earlier this month that the console has sold more than 35 million units worldwide since its launch in 2013.