Sony announced that it will be merging two of its businesses: Sony Computer Entertainment (based in Tokyo) and Sony Network Entertainment International (based in California) into one company - and moving it to California this year.
The new company will be named Sony Interactive Entertainment, and will consist of Sony Computer Entertainment, which is responsible for developing and selling PlayStation hardware, and Sony Network Entertainment International - the company operating the PlayStation Network. Based in San Mateo, this new company is set to open for business on April 1, which is the first day according to the Japanese financial year.
This shift comes at a time when the American market for the gaming industry grows. Gaming has been a lucrative business for Sony.
PlayStation will continue to be led by its CEO Andrew House.
Shawn Layden, president and CEO of Sony Computer Entertainment America, said that the shift will mean a strengthening of the PlayStation, and focus on developments like PS4 and PlayStation VR, and innovations like PlayStation Vue.
Ollie Barder for Forbes believes that this is a logistically sound and long overdue move by Sony; one that intends to unify its game certification process. The certification process had previously been awkward because different regions had different requirements for certification. These guidelines sometimes conflicted and made the production of a game a big hassle.
Moving to California might also be a good move from a time zone perspective and from an administration angle.
Sony's first sale of the PlayStation was in Japan when it first launched in Dec. 1994. Its popularity continues to grow ever since. In 2013, PlayStation 4 became the first PlayStation console to launch in the U.S. and Europe before it did in Japan, and its total sales were up to 36 million units earlier this year.
