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Sony Combines Network Entertainment and PlayStation

Sony has been around for quite some years, it is one technology and consumer electronics company that has been respected for its range of sleek gadgets, electronics and wearable techs. The tech and consumer electronics maker has reshuffled two of its major corporate divisions and it has said that the main reason behind the recent development is to improve its service to consumers.

The Sony Computer Entertainment and the Sony Network Entertainment International are the two entities that are being combined, making them one new business that is dedicated to PlayStation users. The company announced that this merger will be effective from the 1st of April 2016 and it said that the recent changes spell a lot. One of the major changes is that all the business units that used to be run by the PlayStation’s Sony Computer Entertainments and all the businesses being run by the Sony Network Entertainment will now be under the umbrella of Sony Interactive Entertainment, shifting the headquarters to Sam Mateo, Calif.

The Sony Interactive Entertainment will be running hardware, software, networking operations and contents. If this merger is to happen, leadership could be a little problem. Under the new umbrella, the company has appointed Shawn Layden who was formerly the head of Sony Computer Entertainment America as the new head of Worldwide Studios at Sony Interactive Entertainment, while Shuhei Yoshida who was formerly the head of the Worldwide Studios will now be reporting to Shawn Layden as the later is now the president of the studios while the former is chairman, directly reporting to Andrew House who is the head of the combined unit.

Andrew House, the President and Global CEO of Sony Computer Entertainment, has this to say about the merger, “ by integrating the strengths of PlayStations’s hardware , contents, network operations and software, Sony Interactive Entertainment will become an even stronger firm because of the clear objective to further accelerate the growth of the PlayStation business. Along with our business partners, Sony Interactive Entertainment will be developing products and services that will serve as an inspiration for our customers to continue to patronize us and to make us a leading force in the market. We are promising to work hard to maximize corporate value by coordinating our global business operations while still leveraging local expertise.”

The Sony Computer Entertainment was set up in 1993 when the original PlayStation video game console was made while the Sony Network Entertainment was set up in 2010. The Sony Network Entertainment was set up with focus on network services like the PlayStation Network which provides different online games and many other entertainments through the PlayStation Network Store. The two separate divisions will now have to function as one, but Sony hasn’t hinted that this merger could result in the loss of jobs.

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The new division will be retaining and expanding the PlayStation User Engagement, it will increase the average revenue per paying users and it will also drive ancillary revenue. The Sony Interactive Entertainment will target an increase in sales and it hopes to achieve a 5-6 percent operation income margin for the fiscal year ending March 2018.


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