Sony Corp. is focusing on streaming and online game services with a consolidation of its PlayStation hardware, software and network operations under one roof. Sony Computer Entertainment Inc. (SCE) and Sony Network Entertainment International LLC (SNEI) announced the formation of Sony Interactive Entertainment LLC (SIE), a new company that joins the forces of all business units belonging to SCE and SNEI, including hardware, software, content and network services operations. SIE will be headquartered in San Mateo, California, the United States, while also establishing key global business operations in Tokyo and London, beginning Friday, April 1, 2016.

"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 Andrew House, President and Global CEO of Sony Computer Entertainment Inc. and Group Executive in charge of Network Entertainment of Sony Corporation. "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."

SCE, established in November 1993, first launched the original PlayStation system in Japan in December 1994. Since then, SCE has introduced new features with every generation, including the current PlayStation4 system. Furthermore, SCE has delivered high-performance hardware developed by the company, and has brought to life by the wide variety of software titles from SCE Worldwide Studios and third party developers and publishers.

SNEI, established in April 2010, has been providing a portfolio of network services through the entertainment service brand, PlayStation Network (PSN). SNEI’s offerings include game-related services, such as PlayStation Store, a destination for users to purchase digital games and other gaming content; PlayStation Plus, a membership service that provides a wide array of exclusive gaming features and content; and PlayStation Now, a streaming game service that allows users to enjoy a wide range of PlayStation 3 games on various network-enabled devices. Other network services available on PSN include PlayStation Vue, a cloud-based TV service; PlayStation Video, a video-on-demand and transactional service that enables users to enjoy a catalog of movies and TV shows; and PlayStation Music, a music listening destination that offers music from Spotify.

According to Sony, key corporate strategies of SIE are: retain and expand PlayStation user engagement, increase Average Revenue Per Paying Users (ARPPU) and drive ancillary revenue. SIE will expand the PlayStation business by delivering an integrated experience built around games and network services to consumers worldwide.

Furthermore, as the Game and Network Service segment within Sony Group, SIE will work on expanding sales and operating income, and continue to target 1,400 to 1,600 billion yen for sales, and 5 percent to 6 percent operating income margin for the Fiscal Year ending March 2018.