Sony is merging its PlayStation businesses under one group: Sony Interactive Entertainment

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Sony recently announced that they are uniting their separate PlayStation businesses into one division, under the label of Sony Interactive Entertainment (SIE). This new branch announced by Sony will incorporate the existing elements of Sony’s video game business: namely Sony Computer Entertainment Inc. (SCE) and Sony Network Entertainment International LLC (SNEI).

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Andrew House, President and Global CEO of Sony Computer Entertainment Inc. and Group Executive of Network Entertainment of Sony Corporation stated:

“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. 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.”

Sony Computer Entertainment Inc. (SCE) has consistently succeeded in introducing and creating innovative features with every tech generation, and ultimately revolutionising online entertainment. SCE was first established in 1993, and first launched with the original PlayStation in 1994.

On the other hand, Sony Network Entertainment International LLC (SNEI) was first launched in 2010, with the aim of presenting a progressive collection of network services through PlayStation™ Network (PSN℠). At CES 2010, Sony announced the idea of further expanding the original PlayStation brand, to include more than just gaming –hence SNEI was created as a result of this expansion strategy. The premium entertainment brand PlayStation™ Network is a platform for SNEI to offer premium online gaming services PlayStation Plus, PlayStation Store and PlayStation Now.

The combination of SCE and SNEI allows both premium entertainment businesses to merge content, hardware, software and network resources to encourage further growth. The merged label Sony Interactive Entertainment (SIE) will allow enhanced support for consumer needs, and an improved understanding of the constantly progressing technological market to provide the highest quality of computer-based entertainment under the premium PlayStation brand.

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Sony Interactive Entertainment (SIE) is envisioned by the company as the implementation of three crucial corporate stratagems; which are:

  • The expansion of user engagement with the PlayStation,
  • The proliferation of Average Revenue per Paying Users
  • A means to drive supplementary revenue for the company.

The decision to establish a new company merging the two previous Sony businesses suggests the end of the original Sony Computer Entertainment Inc. which was established in 1993, however we are awaiting further information from Sony regarding this.

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