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Network Entertainment and PlayStation by Sony Merged into a Single Business Unit

Update Date: Jan 26, 2016 10:19 AM EST

The Sony customers can now expect an even better service as the company merges two of its biggest corporate divisions - Sony Network Entertainment and Sony Computer Entertainment. Together the two will be known as Sony Interactive Entertainment, a new business that has been dedicated to the PlayStation consumers. The change will be effective from 1st April when all the business units belonging to the two divisions will be combined into one single entity with headquarters in San Mateo, Calif.

This division will handle network service operations apart from content, software and hardware. The change in company structure also brought a change in the leadership as Shawn Layden, previously heading Sony Computer Entertainment America, will now head Sony Interactive Entertainment worldwide. Layden will become the Chairman of the studios and the former worldwide head, Shuhei Yoshida will become the president, reporting to Layden.

"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," said Andrew House, President and Global CEO of Sony Computer Entertainment and group executive in charge of Network Entertainment at Sony, 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," as reported by Venture Beat

This strategic move was made almost a year after Sony made its audio and video business into a fully owned subsidiary. Only two years back the Vaio PC brand was sold by the company. The recent restructuring may be a sign that the company wants to hold on to its few profit making businesses, said the Next Web

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