Sony PlayStation Unit Heads To US
January 27 2016 - 2:03AM
Dow Jones News
(FROM THE WALL STREET JOURNAL 1/27/16)
By Takashi Mochizuki
TOKYO -- Sony Corp. said Tuesday that it will move the
headquarters of its PlayStation videogame unit to California, a
move that reflects the industry's view of the U.S. as offering the
best growth potential.
As part of the move, Tokyo-based Sony Computer Entertainment,
the videogame unit, will merge with San Mateo, Calif.-based Sony
Network Entertainment International LLC, which provides
PlayStation's network services.
The change will take effect in April, and the new company will
be called Sony Interactive Entertainment LLC.
As free smartphone games have proliferated, the Japanese market
for videogame consoles such as the PlayStation has shrunk, while
the U.S. market has continued to expand.
Sony said relocating to the U.S. would enable it to respond more
quickly to industry trends.
"It makes sense for us to put headquarters functions in the U.S.
because we have a lot of important business partners in the U.S.
and a lot of changes in the industry we need to deal with promptly
tend to appear there first," a spokeswoman for Sony Computer
Entertainment said.
Andrew House, chief executive of the PlayStation unit, will
retain the same position at the new company. Other executives
working from Tokyo will also have offices in California, enabling
them to spend more time meeting local business partners, Sony
said.
No job cuts or large personnel shuffles were planned in Japan,
Sony said.
Sony said that it also hoped moving the PlayStation headquarters
to the U.S. would enhance its relationship with customers
there.
Sony Computer Entertainment was established in Japan as a joint
venture of Sony Corp. and Sony Music Entertainment Inc. in 1993,
when Japan was at the forefront of the videogame industry. Sony
released the first PlayStation console in Japan the following year,
before expanding distribution to other countries.
The size of the console-based videogame market in Japan has
halved in seven years, according to a Japanese industry body, the
Computer Entertainment Supplier's Association. Sony and fellow
Japanese videogame giant Nintendo Co. have struggled on their home
turf. Japan was the first location where Sony cut the price of its
PlayStation 4 console last year.
Meanwhile, the U.S. console market has topped $10.4 billion,
making it the world's largest. Sony has sold more than 30 million
PlayStation 4 units since the launch in November 2013. Analysts say
Sony is leading its rivals in the console market, including
Nintendo and Microsoft Corp.
Industry veteran Hirokazu Hamamura, a director at Kadokawa
Dwango Corp., said earlier that the U.S. market is crucial for Sony
to stay ahead of the competition because, in addition to its size,
the latest trends usually originate there.
The U.S. has served as a testing ground for new PlayStation
services, including a videogame subscription service called
PlayStation Now.
(END) Dow Jones Newswires
January 27, 2016 02:48 ET (07:48 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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