Sony Moves PlayStation Business From Japan To US In Major Gaming Shakeup

Sony is shaking up its PlayStation gaming unit in a drive for greater global efficiencies and tighter integration across its operating units.

Sony Computer Entertainment Inc. (SCE), headquartered in Japan, and Sony Network Entertainment Interactive (SNEI) LLC, headquartered in the U.S., are now a new company: Sony Interactive Entertainment LLC (SIE).

The new unit will call San Mateo, California, home with Andrew House, president and global CEO of Sony Computer Entertainment Inc., serving as global director of Sony Interactive Entertainment.

SCE was responsible for PlayStation hardware and the development of software through SCE Worldwide Studios and third party developers. SNEI oversaw the PlayStation Network, PlayStation Now, PlayStation Vue and other network services. "By integrating the strengths of PlayStation's hardware, software, content and network operations, SIE will become an even stronger entity, with a clear objective to further accelerate the growth of the PlayStation business," House said in a statement.

In addition to House, Sony President and CEO Kazuo Hirai will serve on the board of directors. SIE begins operations on April 1 with clear goals regarding the growth of the PlayStation hardware and network services. "SIE will vigorously expand the PlayStation business by delivering an integrated experience built around best-in-class games and network services to consumers worldwide," Sony said in a statement.

SIE has a target of 1,600 billion Yen ($13.5 billion) for the fiscal year ending March 2018. Sony posted 1,338 billion Yen ($11.57 billion) in sales for fiscal year 2014 ending in March 2015. Sony announces its third quarter earnings for fiscal year 2015 Friday.

Sony will continue to have a strong presence in Tokyo. Along with its global headquarters, Sony announced it will establish new bases in Tokyo and London that will work with SIE in California.

"The formation of SIE will create an even stronger PlayStation. 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," Shawn Layden, President and CEO of Sony Computer Entertainment America, said on the PlayStation blog.