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Sony Creates New Company To House Computer Entertainment And Network Entertainment
Sony has announced the creation of a new limited liability corporation that brings together the operations responsible for gaming hardware, software, content, and network services. Sony Interactive Entertainment LLC will be officially incorporated on Friday, April 1, 2016.
Andrew House (pictured above), who is currently CEO of Sony Computer Entertainment, will lead the new business. Shawn Layden, who is currently head of Sony Computer Entertainment America will handle Worldwide Studios.
This leaves us to ask where this leaves current president of worldwide studios Shuhei Yoshida. We’ve inquired about his role in the new corporate structure and will update should we receive a response.
In addition to hardware, game software, and PlayStation Network operations, Sony Interactive will also handle PlayStation Vue, PlayStation Now, PlayStation Music, and original content like the show Powers.
We’ve also asked Sony to clarify if this impacts the current regional structure upon which the PlayStation unit operates. Again, we’ll update once we understand how the new LLC impacts global operations.
The new business is targeting an increase in operating income of five to six percent by the close of fiscal year 2018. The company anticipates sales ranging from ¥1.4 trillion ($11.8 billion) to ¥1.6 trillion ($13.5 billion) for that same 12-month period.
Sony Interactive Entertainment will be based in San Mateo, California.
Update: Shuhei Yoshida has shared via Twitter that his title, president of worldwide studios, will not be changed. He will now report to Shawn Layden, who appears on the organizational chart above as lead for that area.
Update 2: Sony says it will be retaining its regional structure. "Although SIE will be headquartered in San Mateo, California, we will coordinate key global business operations and leverage local expertise across San Mateo, Tokyo, and London in order to further enhance the competitiveness of the overall PS business," a representative told us via email. "In terms of operation, there will be no major changes. A traditional strength of the PlayStation and PSN business has always been having empowered local operations close to partners and consumers. We plan to continue and build on this successful approach."
Our Take
This is a significant shake-up for Sony, but one that evidences the power of the company’s gaming operations. Putting everything under one roof will facilitate strategic decisions that consider the wider PlayStation ecosystem. The only questions that remain are about staffing, as there are clearly some adjustments being made at the start of Sony’s next fiscal year on April 1.
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