Sony Corp. (NYSE:ADR) announced on Tuesday that the company would merge two of its entertainment business into a single company called Interactive Entertainment LLC, focusing more on streaming and online game services.
The new company will bring together the Sony Computer Entertainment and Sony Network Entertainment business units. The headquarter of the new company will be located in San Mateo, California and the new company will begin operations from April 1. Andrew House, the current president and CEO of Sony Computer Entertainment, will head 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,” said House in a statement.
Kazuo Hirai, the Chief Executive Officer of Sony, said that 2016 would be a year for the Tokyo-based company to expand. The company has been through a tough time when it cut thousands of jobs and shifted away from smartphones and TVs. Now the company focuses more on games and services, image sensors, movies and streaming music.
“Network and games have practically the same user base and off-line games are no longer the driving force of the market,” Amir Anvarzadeh, a manager of Japanese equity sales at BGC Partners Inc. in Singapore, wrote in an e-mailed note. “This merger of the two which are both under the watchful eye of Andrew House, who has executed flawlessly thus far, makes perfect sense.”