PlayStation Companies Join to Form Sony Interactive Entertainment

Starting April 1, we're going to need to get used to seeing a new company name at the start of every PlayStation game. After years of having its business split across two different subsidiaries, a new company called Sony Interactive Entertainment will manage the entirety of the PlayStation platform.

For years, two major companies ran PlayStation: Sony Computer Entertainment, Inc. was in charge of hardware development, game development, third party relations, and marketing; Sony Network Entertainment International, founded back in 2010, managed everything to do with the PlayStation Network, including the PSN Store, game streaming service PlayStation Now, and the handful of streaming entertainment services offered on the platform. Now those two companies have been brought together.

In an announcement published last night, Andrew House (current President of SCE and future President and Global CEO of SIE) made the case for the new company:

“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.”

Once it forms, Sony Interactive Entertainment will be headquartered in San Mateo, CA, which is currently home to SCE America.

This re-organization also brings along a couple of shifts in management, the most interesting of which is the elevation of former SCE America head Shawn Layden to the head of Worldwide Studios, the company's chief game division. The current president of SCE Worldwide, Shuhei Yoshida explained in a tweet that he will keep his title but will begin reporting to Layden. SCE America has been key to the recovery and growth of the PlayStation brand over the past few years, so it makes sense to see Sony bring Layden up in this way. And as long as we still get to see Shuhei's joyful face, I'm not complaining.

Thanks for the article Austin.

That Wu Tang joke is ace, Jesus.

The only SIE that matters

I'm more interested in knowing the fate of to SCE Japan and Asia. No mention of them in the press releases.

Playstation fam

What is everyone's read on Shawn Laydan? He seemed shaky on stage at 2014 e3, but at PAX and PS Expo this past year he was more laid back looking.

I can't say it is shocking that more PlayStation America people are getting higher positions within the video games divisions of Sony. I'm not enough of a business man to say if that is good or bad though...it just seems more logical to my layman's brain. Of course Shuhei Yoshida is great and I have a lot of respect for how Kazuo Hirai is handling the CEO position. They should keep Shuhei as an onstage spokesman for sure, he has worked hard to tap into the audience directly and through people like Greg Miller and Geoff Keighley.

He was at PAX? holy shit.

Shawn Laden always seemed very genuine, and seems like he understands the audience very well.

@cooljammer00: I came here to post this. Well done, friend.

That's nice Andrew. Now could you say that announcement again in Japanese? I liked the way you spoke it last time.

Respect yosp.

I think Layden's biggest issue is he had to follow Jack Tretton. Jack had a smoothness to him. It seems like Layden is getting more comfortable with the position and managing the crowd at stuff like E3 and PSX. He is an authentic guy though. He's been with Sony and PlayStation forever, and there's stuff like him talking about Vib-Ribbon and working on the publishing side of Mortal Kombat II or III.

@monkeyking1969: I think it's interesting, to say the least, to see westerners are rising above the Japanese old guard in such an old (for video games) company. I often wonder if younger or western management would let risk averse, conservative Japanese companies bring more their precious IPs worldwide to increase sales. (Looking at you, Nintendo and Bandai). Sony is usually pretty good about bringing things out in all regions and platforms (like, Steam) where it makes sense.

Unexpected Rza reference should not have been unexpected.

One of those real stupid looking from the outside restructurings where you just go "OKAY SURE"

One more step on Andrew House's path to world domination.

Oh man, if this is this some elaborate way to give Shu less responsibility so he has more time to make more appearances then I'm all for it.

WORLDWIDE

Was there any particular reason why it was run by two different companies for so many years? That seems a wee bit strange, but I'm sure there's a logic behind it.

@excitable_misunderstood_genius: You mean Wu-Tang/Method Man reference?

Did Shuhei just get a window seat?

"Don't worry, Shuhei. You can still be worldwide 'PRESIDENT', but make sure you report everything to the worldwide HEAD first."

So Kevin Butler is coming back?

@robowitch: This is pure speculation, but I'd guess that Sony probably wanted to expand their network stuff beyond the PlayStation brand. They had the whole rebrand of the PSN store to be the "Sony Entertainment Network" and regularly put a focus on the movies and music on the store. But at this point, services like iTunes and Google Play have become such big players on that side of the industry, it would probably be hard for Sony to put much of a dent in their market share. It probably makes sense to double down on the PlayStation side of things considering how well the PS4 has been selling.

April 1st, huh.....forget it!

I'm slightly confused as to what this means for Shu, and why they would change his position? If he were getting promoted I might understand, he seems to be doing a great job, but if he's now answering to leyton it sounds more like a demotion even if it is minor

Meth is talking about Rza in the referenced quote. Come on man, who else would be the intellect of Wu Tang? Meth is the front-man, not the brains!

Booo Shuhei is awesome, and this looks like a demotion.

Andrew House has really small hands.I notice it every e3 when he's onstage.

@excitable_misunderstood_genius: I see where you're going with that now lol

Seems like this was a smart move for Sony.

About time. I hope this means that they'll start to consolidate PSN releases too. Not knowing when or if something is coming to PSN Europe has been infuriating.

@excitable_misunderstood_genius: You were actually right to not expect a RZA reference, because it was a GZA reference.

Worldwide Studios needed a shakeup and there needs to be accountability for Sony's lackluster first party offerings for the PS4.

It makes the most sense to bring everything under one roof. Sony is now heavily dependent on the PlayStation brand to jump start the company and pull it into a better financial position. It's hard to do that when you have to bounce ideas and changes between two different sets of organizational flow charts.

What are you going to tell me next, Rza didn't release Liquid Swords?

Yep, you are absolutely right, I wrote the wrong -za. Gza, the genius, is the head.

No wonder poor @flashflood_29 was confused.

I blew it at Wu Tang today, guys.

@cooljammer00: My thoughts exactly. Aggressive stance all the way.

My pure speculation is that VR has a bit to do with this. You are going to see "interactive" used a lot to distance some VR experiences from games. Especially ones made by multidisciplinary teams. Even if what you experience by most definitions is a game or what games have become. Those who want clearer definitions may actually get them. I'm worried it will just put games in a ghetto where the influence of other interactive media cannot influence.

@cooljammer00: thank you

Every time I see that sub-heading, I read 'The new company will ruin everything...'

Like the network services could conceivably get any worse.

SCE sounds better

@jd_delgado: Yes, but now his body is Voltron

I feel like we've been here before.. can't describe this Deja-vu. Don't understand dropping the playstation brand either (why not "Playstation Entertainment Inc" or similar?). Feels like Sony merge/demerge the Playstation brand(s) as and when it suits their wider business needs, and it never particularly helps the gaming side.

@cooljammer00 said:

The only SIE that matters

You read my mind and beat me to the punch...

Good work, duder.

I picked Playstation because it was more of a global brand than the other console brands. When I use an Xbox I am painfully aware that it is made primarily for American consumers. Nintendo is even more nationalist than Xbox, but it has novelty value due to more significant cultural differences.

Playstation truly felt like a global brand, with significant efforts coming from Japan, Europe, and America. The cultural diversity of Playstation translates to a greater variety of game content. With this change in Sony's interactive entertainment company structure I hope they don't ignore other regions when developing their network service offerings. Is Playstation Now only available in America? If so, why is it not also available in Sony's country of origin? (or is it because it's Gakai/onLive which started in that country?) If this new corporate monoculture is better network services for Americans versus the rest of the world, will game content also be built for that audience?

Sony cannot be a better Microsoft than Microsoft.

P.S. They should enhance the DRM so I can still watch YouTube or Netflix when I don't have the latest update or some hackers have hacked their network. That sort of thing is ridiculous in the age of connected devices and televisions.

About time, I think it really is a great move from these companies